Is Sirius XM Radio Inc (NASDAQ:SIRI) worth your attention right now? According to many armchair analysts, and even some experts, Sirius can deliver solid appreciation over the interim, though it’s tough for any mega-long-term investor to be über-bullish. At the onset of this week’s market close, SIRI is down slightly, and is one of the most widely traded stocks in U.S. exchanges, according to the latest volume data.
Still, that’s why it’s worth pointing out that money managers are taking a bearish view. The number of bullish hedge fund bets dropped by 10 recently.
Credit: Sirius XM Radio Inc (NASDAQ:SIRI)
If you’d ask most stock holders, hedge funds are assumed to be underperforming, outdated financial tools of yesteryear. While there are more than 8000 funds with their doors open at present, we hone in on the upper echelon of this group, close to 450 funds. It is widely believed that this group oversees the lion’s share of the hedge fund industry’s total capital, and by paying attention to their highest performing equity investments, we have figured out a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).
Just as important, positive insider trading sentiment is a second way to parse down the world of equities. There are many reasons for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if “monkeys” understand what to do (learn more here).
With all of this in mind, it’s important to take a peek at the recent action regarding Sirius XM Radio Inc (NASDAQ:SIRI).
What does the smart money think about Sirius XM Radio Inc (NASDAQ:SIRI)?
Heading into 2013, a total of 36 of the hedge funds we track held long positions in this stock, a change of -22% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes considerably.
When looking at the hedgies we track, Omega Advisors, managed by Leon Cooperman, holds the most valuable position in Sirius XM Radio Inc (NASDAQ:SIRI). Omega Advisors has a $207 million position in the stock, comprising 3.8% of its 13F portfolio. The second largest stake is held by Steven Cohen of SAC Capital Advisors, with a $202 million position; 2.4% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Philippe Laffont’s Coatue Management, John Griffin’s Blue Ridge Capital and Donald Chiboucis’s Columbus Circle Investors.
Seeing as Sirius XM Radio Inc (NASDAQ:SIRI) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there were a few fund managers that decided to sell off their entire stakes heading into 2013. At the top of the heap, Dinakar Singh’s TPG-AXON Management LP dumped the biggest investment of the 450+ funds we track, valued at an estimated $82 million in stock.. Paul Hudson’s fund, Glade Brook Capital Partners, also dumped its stock, about $17 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 10 funds heading into 2013.
What do corporate executives and insiders think about Sirius XM Radio Inc (NASDAQ:SIRI)?
Insider buying is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest six-month time period, Sirius XM Radio Inc (NASDAQ:SIRI) has experienced 2 unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Sirius XM Radio Inc (NASDAQ:SIRI). These stocks are Salem Communications Corp (NASDAQ:SALM), Saga Communications, Inc. (NYSEAMEX:SGA), Entercom Communications Corp. (NYSE:ETM), Cumulus Media Inc (NASDAQ:CMLS), and Pandora Media Inc (NYSE:P). This group of stocks are in the broadcasting – radio industry and their market caps resemble SIRI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Salem Communications Corp (NASDAQ:SALM) | 3 | 0 | 2 |
| Saga Communications, Inc. (NYSEAMEX:SGA) | 2 | 0 | 1 |
| Entercom Communications Corp. (NYSE:ETM) | 3 | 0 | 0 |
| Cumulus Media Inc (NASDAQ:CMLS) | 13 | 2 | 0 |
| Pandora Media Inc (NYSE:P) | 14 | 0 | 9 |
With the results demonstrated by our research, retail investors must always monitor hedge fund and insider trading sentiment, and Sirius XM Radio Inc (NASDAQ:SIRI) applies perfectly to this mantra.
