Between June 25 and October 30th the Russell 2000 ETF (IWM) has lagged the larger S&P 500 ETF (SPY) by more than 14 percentage points as investors worry over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller cap stocks than the normal investor, and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Nidec Corporation (ADR) (NYSE:NJ) and see how the stock is affected by the recent hedge fund activity.
Nidec Corporation investors should pay attention that the hedge fund interest towards the stock remained unchanged in the third quarter and NJ was in 4 hedge funds’ portfolios at the end of September. At the end of this article we will also compare NJ to other stocks, including Prologis Inc (NYSE:PLD), ARM Holdings plc (ADR) (NASDAQ:ARMH), and Fiserv, Inc. (NASDAQ:FISV) to get a better sense of its popularity.
Today there are dozens of tools market participants employ to appraise publicly traded companies. Two of the most innovative tools are hedge fund and insider trading activity. We have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce the S&P 500 by a significant amount (see the details here).
Keeping this in mind, let’s review the key action surrounding Nidec Corporation (ADR) (NYSE:NJ).
Hedge fund activity in Nidec Corporation (ADR) (NYSE:NJ)
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
Among them, Jim Simons’ Renaissance Technologies held a $2.3 million stake in the company, followed by D.E. Shaw and Israel Englander’s Millennium Management, with stakes valued at $2.1 million and $0.8 million, respectively.