Arris Group, Inc. (NASDAQ:ARRS) investors should pay attention to a decrease in hedge fund sentiment recently.
At the moment, there are dozens of metrics investors can use to watch Mr. Market. Two of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top money managers can beat the market by a significant amount (see just how much).
Just as key, positive insider trading sentiment is a second way to break down the world of equities. As the old adage goes: there are many motivations for an insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Several academic studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, let’s take a look at the key action encompassing Arris Group, Inc. (NASDAQ:ARRS).
What does the smart money think about Arris Group, Inc. (NASDAQ:ARRS)?
Heading into Q2, a total of 18 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were upping their stakes considerably.
Of the funds we track, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC had the biggest position in Arris Group, Inc. (NASDAQ:ARRS), worth close to $98.7 million, accounting for 1.1% of its total 13F portfolio. Coming in second is Steven Cohen of SAC Capital Advisors, with a $74.5 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include David Gallo’s Valinor Management LLC, David Dreman’s Dreman Value Management and Donald Chiboucis’s Columbus Circle Investors.
Because Arris Group, Inc. (NASDAQ:ARRS) has experienced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there were a few hedge funds that elected to cut their entire stakes last quarter. At the top of the heap, Cliff Asness’s AQR Capital Management sold off the largest investment of the “upper crust” of funds we monitor, valued at close to $18.3 million in stock.. Peter Algert and Kevin Coldiron’s fund, Algert Coldiron Investors, also said goodbye to its stock, about $1.6 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Arris Group, Inc. (NASDAQ:ARRS)?
Insider trading activity, especially when it’s bullish, is best served when the company in question has seen transactions within the past 180 days. Over the latest half-year time period, Arris Group, Inc. (NASDAQ:ARRS) has seen zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Arris Group, Inc. (NASDAQ:ARRS). These stocks are Loral Space & Communications Ltd. (NASDAQ:LORL), Ciena Corporation (NASDAQ:CIEN), ViaSat, Inc. (NASDAQ:VSAT), Exelis Inc (NYSE:XLS), and Acme Packet, Inc. (NASDAQ:APKT). This group of stocks are the members of the communication equipment industry and their market caps match ARRS’s market cap.