Is Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) a worthy investment right now? Investors who are in the know are getting more bullish. The number of bullish hedge fund bets went up by 1 in recent months.
At the moment, there are many methods shareholders can use to monitor the equity markets. Two of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the S&P 500 by a superb margin (see just how much).
Equally as integral, positive insider trading activity is another way to parse down the investments you're interested in. As the old adage goes: there are a number of stimuli for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if you understand what to do (learn more here).
Keeping this in mind, let's take a gander at the recent action encompassing Sierra Wireless, Inc. (USA) (NASDAQ:SWIR).
In preparation for this quarter, a total of 9 of the hedge funds we track were long in this stock, a change of 13% from the first quarter. With the smart money's capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings substantially.
According to our comprehensive database, Chuck Royce's Royce & Associates had the largest position in Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), worth close to $7.4 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by Roumell Asset Management, managed by Jim Roumell, which held a $6.2 million position; 3.8% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Peter A. Wright's P.A.W. CAPITAL PARTNERS, Jim Simons's Renaissance Technologies and Israel Englander's Millennium Management.
As aggregate interest increased, key hedge funds were breaking ground themselves. PEAK6 Capital Management, managed by Matthew Hulsizer, assembled the largest position in Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). PEAK6 Capital Management had 0.5 million invested in the company at the end of the quarter. Matthew Hulsizer's PEAK6 Capital Management also initiated a $0.1 million position during the quarter. The only other fund with a brand new SWIR position is Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital.
Insider trading activity, especially when it's bullish, is at its handiest when the primary stock in question has experienced transactions within the past half-year. Over the last half-year time period, Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey's studies, everyday investors should always monitor hedge fund and insider trading activity, and Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is no exception.