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Do Hedge Funds and Insiders Love Arris Group, Inc. (NASDAQ:ARRS)?

Arris Group, Inc. (NASDAQ:ARRS) was in 16 hedge funds’ portfolio at the end of December. ARRS investors should be aware of an increase in support from the world’s most elite money managers of late. There were 14 hedge funds in our database with ARRS holdings at the end of the previous quarter.


According to most traders, hedge funds are assumed to be slow, old financial vehicles of yesteryear. While there are greater than 8000 funds with their doors open at the moment, we at Insider Monkey look at the aristocrats of this group, around 450 funds. Most estimates calculate that this group oversees the majority of the smart money’s total capital, and by tracking their highest performing picks, we have determined a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 outperformed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Just as key, optimistic insider trading activity is a second way to parse down the stock market universe. Obviously, there are lots of reasons for an executive to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this method if “monkeys” know where to look (learn more here).

Keeping this in mind, we’re going to take a glance at the latest action encompassing Arris Group, Inc. (NASDAQ:ARRS).

Hedge fund activity in Arris Group, Inc. (NASDAQ:ARRS)

Heading into 2013, a total of 16 of the hedge funds we track were long in this stock, a change of 14% from one quarter earlier. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes substantially.

When looking at the hedgies we track, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital had the most valuable position in Arris Group, Inc. (NASDAQ:ARRS), worth close to $74 million, accounting for 0.4% of its total 13F portfolio. On Arrowstreet Capital’s heels is Steven Cohen of SAC Capital Advisors, with a $68 million position; 0.4% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include David Gallo’s Valinor Management LLC, David Dreman’s Dreman Value Management and Cliff Asness’s AQR Capital Management.

As industrywide interest jumped, key money managers were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, established the biggest position in Arris Group, Inc. (NASDAQ:ARRS). Arrowstreet Capital had 74 million invested in the company at the end of the quarter. Alec Litowitz and Ross Laser’s Magnetar Capital also initiated a $12 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Ken Gray and Steve Walsh’s Bryn Mawr Capital.

How have insiders been trading Arris Group, Inc. (NASDAQ:ARRS)?

Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has experienced transactions within the past half-year. Over the latest six-month time frame, Arris Group, Inc. (NASDAQ:ARRS) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned time-tested strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Arris Group, Inc. (NASDAQ:ARRS) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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