Broadcom Corporation (NASDAQ:BRCM) has seen an increase in hedge fund sentiment in recent months.
In the financial world, there are a multitude of metrics investors can use to analyze the equity markets. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can beat the market by a solid margin (see just how much).
Equally as integral, optimistic insider trading sentiment is a second way to parse down the financial markets. There are a variety of stimuli for a bullish insider to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).
With all of this in mind, it's important to take a peek at the key action surrounding Broadcom Corporation (NASDAQ:BRCM).
Heading into 2013, a total of 37 of the hedge funds we track were bullish in this stock, a change of 6% from one quarter earlier. With hedgies' capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully.
When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Broadcom Corporation (NASDAQ:BRCM). Citadel Investment Group has a $164 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is David Tepper of Appaloosa Management LP, with a $114 million position; 1% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Glenn Russell Dubin's Highbridge Capital Management, Scott Fine and Peter Richards's Empire Capital Management and Jim Simons's Renaissance Technologies.
Now, specific money managers were breaking ground themselves. Highbridge Capital Management, managed by Glenn Russell Dubin, assembled the most valuable position in Broadcom Corporation (NASDAQ:BRCM). Highbridge Capital Management had 62 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital also made a $16 million investment in the stock during the quarter. The other funds with brand new BRCM positions are Israel Englander's Millennium Management, Joe DiMenna's ZWEIG DIMENNA PARTNERS, and John Hurley's Cavalry Asset Management.
Insider trading activity, especially when it's bullish, is at its handiest when the company in question has seen transactions within the past six months. Over the latest six-month time frame, Broadcom Corporation (NASDAQ:BRCM) has experienced zero unique insiders buying, and 10 insider sales (see the details of insider trades here).
With the returns exhibited by Insider Monkey's time-tested strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Broadcom Corporation (NASDAQ:BRCM) applies perfectly to this mantra.
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