Hedge Funds Are Buying ARM Holdings plc (ADR) (NASDAQ:ARMH)

ARM Holdings plc (ADR) (NASDAQ:ARMH) was in 16 hedge funds’ portfolio at the end of December. ARMH investors should pay attention to an increase in enthusiasm from smart money in recent months. There were 15 hedge funds in our database with ARMH positions at the end of the previous quarter.

ARM Holdings plc (LON:ARM)

In the 21st century investor’s toolkit, there are tons of metrics shareholders can use to watch Mr. Market. 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 best picks of the elite fund managers can beat their index-focused peers by a solid margin (see just how much).

Equally as key, optimistic insider trading sentiment is another way to parse down the stock market universe. Just as you’d expect, there are lots of motivations for a bullish insider to downsize shares of his or her company, but just one, very clear reason why they would buy. Various academic studies have demonstrated the market-beating potential of this method if investors understand where to look (learn more here).

With these “truths” under our belt, it’s important to take a glance at the latest action regarding ARM Holdings plc (ADR) (NASDAQ:ARMH).

Hedge fund activity in ARM Holdings plc (ADR) (NASDAQ:ARMH)

In preparation for this year, a total of 16 of the hedge funds we track were long in this stock, a change of 7% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings significantly.

Of the funds we track, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital had the biggest position in ARM Holdings plc (ADR) (NASDAQ:ARMH), worth close to $37 million, comprising 0.2% of its total 13F portfolio. On Arrowstreet Capital’s heels is Paul Reeder and Edward Shapiro of PAR Capital Management, with a $32 million position; the fund has 1.4% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Donald Chiboucis’s Columbus Circle Investors, Andrew Sandler’s Sandler Capital Management and John Thaler’s JAT Capital Management.

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, established the largest position in ARM Holdings plc (ADR) (NASDAQ:ARMH). Arrowstreet Capital had 37 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also made a $24 million investment in the stock during the quarter. The other funds with brand new ARMH positions are John Thaler’s JAT Capital Management, Ken Griffin’s Citadel Investment Group, and Sean Cullinan’s Point State Capital.

Insider trading activity in ARM Holdings plc (ADR) (NASDAQ:ARMH)

Bullish insider trading is best served when the primary stock in question has seen transactions within the past half-year. Over the last six-month time frame, ARM Holdings plc (ADR) (NASDAQ:ARMH) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results demonstrated by our studies, everyday investors should always watch hedge fund and insider trading sentiment, and ARM Holdings plc (ADR) (NASDAQ:ARMH) is an important part of this process.

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

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!