Hedge Funds Are Dumping A. Schulman Inc (NASDAQ:SHLM) – Balchem Corporation (NASDAQ:BCPC), LSB Industries, Inc. (NYSE:LXU)

A. Schulman Inc (NASDAQ:SHLM) was in 11 hedge funds’ portfolio at the end of December. SHLM has seen a decrease in activity from the world’s largest hedge funds in recent months. There were 12 hedge funds in our database with SHLM positions at the end of the previous quarter.

To the average investor, there are plenty of indicators shareholders can use to watch their holdings. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can outperform the market by a superb margin (see just how much).

A. Schulman Inc (NASDAQ:SHLM)

Equally as important, optimistic insider trading activity is a second way to parse down the financial markets. Just as you’d expect, there are lots of stimuli for an insider to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this strategy if investors know what to do (learn more here).

Now, it’s important to take a look at the latest action surrounding A. Schulman Inc (NASDAQ:SHLM).

How are hedge funds trading A. Schulman Inc (NASDAQ:SHLM)?

At the end of the fourth quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of -8% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes considerably.

When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the largest position in A. Schulman Inc (NASDAQ:SHLM). Royce & Associates has a $56 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Daruma Asset Management, managed by Mariko Gordon, which held a $30 million position; 0% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Cliff Asness’s AQR Capital Management, David Dreman’s Dreman Value Management and Jim Simons’s Renaissance Technologies.

Due to the fact that A. Schulman Inc (NASDAQ:SHLM) has experienced bearish sentiment from the smart money, it’s safe to say that there lies a certain “tier” of hedge funds that elected to cut their positions entirely at the end of the year. At the top of the heap, Mike Vranos’s Ellington cut the largest stake of the 450+ funds we key on, valued at an estimated $1 million in stock.. Mario Gabelli’s fund, GAMCO Investors, also dropped its stock, about $1 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 1 funds at the end of the year.

What do corporate executives and insiders think about A. Schulman Inc (NASDAQ:SHLM)?

Insider buying is most useful when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, A. Schulman Inc (NASDAQ:SHLM) has experienced 1 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to A. Schulman Inc (NASDAQ:SHLM). These stocks are Solazyme Inc (NASDAQ:SZYM), FutureFuel Corp. (NYSE:FF), Rentech, Inc. (NYSEAMEX:RTK), Balchem Corporation (NASDAQ:BCPC), and LSB Industries, Inc. (NYSE:LXU). This group of stocks are the members of the chemicals – major diversified industry and their market caps are similar to SHLM’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Solazyme Inc (NASDAQ:SZYM) 10 2 6
FutureFuel Corp. (NYSE:FF) 11 2 0
Rentech, Inc. (NYSEAMEX:RTK) 17 0 4
Balchem Corporation (NASDAQ:BCPC) 7 1 2
LSB Industries, Inc. (NYSE:LXU) 13 0 8

With the returns exhibited by the aforementioned studies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and A. Schulman Inc (NASDAQ:SHLM) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

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!