Is it smart to be bullish on Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)?
To many of your fellow readers, hedge funds are assumed to be delayed, old investment tools of a period lost to current times. Although there are In excess of 8,000 hedge funds in operation currently, Insider Monkey looks at the crème de la crème of this group, about 525 funds. It is widely held that this group oversees most of the hedge fund industry’s total assets, and by watching their highest quality stock picks, we’ve discovered a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as crucial, optimistic insider trading sentiment is another way to analyze the investments you’re interested in. There are many motivations for an executive to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this tactic if piggybackers know what to do (learn more here).
What’s more, it’s important to examine the recent info about Sierra Wireless, Inc. (USA) (NASDAQ:SWIR).
How have hedgies been trading Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)?
At the end of the second quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of 11% from the first quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes substantially.
According to our 13F database, Royce & Associates, managed by Chuck Royce, holds the largest position in Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). Royce & Associates has a $14.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Royce & Associates’s heels is Roumell Asset Management, managed by Jim Roumell, which held a $7.1 million position; 4.9% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Peter A. Wright’s P.A.W. CAPITAL PARTNERS, John Overdeck and David Siegel’s Two Sigma Advisors and Jim Simons’s Renaissance Technologies.
As one would understandably expect, certain bigger names have been driving this bullishness. Royce & Associates, managed by Chuck Royce, created the largest position in Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). Royce & Associates had 14.7 million invested in the company at the end of the quarter. Jim Roumell’s Roumell Asset Management also made a $7.1 million investment in the stock during the quarter. The following funds were also among the new SWIR investors: Peter A. Wright’s P.A.W. CAPITAL PARTNERS, John Overdeck and David Siegel’s Two Sigma Advisors, and Jim Simons’s Renaissance Technologies.
Insider trading activity in Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)
Insider buying made by high-level executives is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the latest half-year time period, Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). These stocks are Comtech Telecomm. Corp. (NASDAQ:CMTL), Calix Inc (NYSE:CALX), Allot Communications Ltd. (NASDAQ:ALLT), CalAmp Corp. (NASDAQ:CAMP), and Exfo Inc (NASDAQ:EXFO). This group of stocks are in the communication equipment industry and their market caps are closest to SWIR’s market cap.