Hedge Funds Aren’t Crazy About AutoNavi Holdings Ltd (ADR) (AMAP) Anymore
What's a smart AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP) investor to do?
If you were to ask many of your fellow readers, hedge funds are perceived as useless, outdated investment tools of an era lost to time. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site aim at the crème de la crème of this group, close to 525 funds. It is assumed that this group oversees the majority of the hedge fund industry's total assets, and by paying attention to their highest quality investments, we've discovered a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as useful, bullish insider trading activity is a second way to look at the world of equities. Just as you'd expect, there are many reasons for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this strategy if piggybackers understand what to do (learn more here).
Furthermore, it's important to examine the latest info surrounding AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP).
Hedge fund activity in AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP)
At Q2's end, a total of 3 of the hedge funds we track were long in this stock, a change of -50% from the first quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings substantially.
Since AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP) has witnessed dropping sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds who were dropping their entire stakes heading into Q2. Intriguingly, Scott Sinclair and Laurence Chang's Cascabel Management sold off the largest stake of the 450+ funds we key on, totaling close to $2.8 million in stock, and D. E. Shaw of D E Shaw was right behind this move, as the fund cut about $0.5 million worth. These moves are interesting, as total hedge fund interest dropped by 3 funds heading into Q2.
What have insiders been doing with AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP)?
Legal insider trading, particularly when it's bullish, is at its handiest when the company we're looking at has experienced transactions within the past six months. Over the last half-year time frame, AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP). These stocks are Proofpoint Inc (NASDAQ:PFPT), E2open Inc (NASDAQ:EOPN), Accelrys, Inc. (NASDAQ:ACCL), SciQuest, Inc. (NASDAQ:SQI), and Bazaarvoice Inc (NASDAQ:BV). This group of stocks are in the application software industry and their market caps resemble AMAP's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Proofpoint Inc (NASDAQ:PFPT)
E2open Inc (NASDAQ:EOPN)
Accelrys, Inc. (NASDAQ:ACCL)
SciQuest, Inc. (NASDAQ:SQI)
Bazaarvoice Inc (NASDAQ:BV)
Using the returns demonstrated by the previously mentioned strategies, average investors must always keep one eye on hedge fund and insider trading sentiment, and AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP) is an important part of this process.