Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) investors should pay attention to a decrease in activity from the world's largest hedge funds lately.
In the financial world, there are plenty of methods shareholders can use to track their holdings. Two of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the broader indices by a healthy amount (see just how much).
Equally as integral, bullish insider trading activity is a second way to parse down the investments you're interested in. As the old adage goes: there are plenty of incentives for an insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this tactic if "monkeys" understand where to look (learn more here).
Keeping this in mind, we're going to take a glance at the key action regarding Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL).
In preparation for this quarter, a total of 5 of the hedge funds we track were bullish in this stock, a change of -17% from the first quarter. With hedgies' capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.
According to our comprehensive database, Chuck Royce's Royce & Associates had the biggest position in Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL), worth close to $15.6 million, accounting for less than 0.1%% of its total 13F portfolio. On Royce & Associates's heels is Nokomis Capital, managed by Brett Hendrickson, which held a $7.2 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include D. E. Shaw's D E Shaw, Jim Simons's Renaissance Technologies and John Overdeck and David Siegel's Two Sigma Advisors.
Seeing as Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) has witnessed declining sentiment from the smart money, it's easy to see that there lies a certain "tier" of hedge funds that slashed their positions entirely at the end of the first quarter. It's worth mentioning that Richard Chilton's Chilton Investment Company sold off the biggest investment of all the hedgies we track, worth about $0.2 million in stock. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds at the end of the first quarter.
Insider buying is particularly usable when the company we're looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
With the returns demonstrated by our strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) shareholders fit into this picture quite nicely.