Cymer, Inc. (NASDAQ:CYMI) has seen a decrease in hedge fund sentiment lately.
According to most market participants, hedge funds are viewed as worthless, old investment vehicles of years past. While there are greater than 8000 funds trading today, we choose to focus on the aristocrats of this group, about 450 funds. It is estimated that this group controls the lion’s share of the smart money’s total asset base, and by keeping an eye on their best picks, we have discovered a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).
Just as key, bullish insider trading activity is a second way to parse down the marketplace. Just as you’d expect, there are plenty of reasons for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this strategy if shareholders understand where to look (learn more here).
With these “truths” under our belt, we’re going to take a glance at the recent action regarding Cymer, Inc. (NASDAQ:CYMI).
What have hedge funds been doing with Cymer, Inc. (NASDAQ:CYMI)?
In preparation for this quarter, a total of 21 of the hedge funds we track were long in this stock, a change of -13% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings considerably.
When looking at the hedgies we track, Nick Niell’s Arrowgrass Capital Partners had the biggest position in Cymer, Inc. (NASDAQ:CYMI), worth close to $85.1 million, comprising 4.9% of its total 13F portfolio. Sitting at the No. 2 spot is Alpine Associates, managed by Robert Emil Zoellner, which held a $75.7 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Cliff Asness’s AQR Capital Management, Tom Sandell’s Sandell Asset Management and John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co.
Due to the fact that Cymer, Inc. (NASDAQ:CYMI) has experienced a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there were a few money managers who were dropping their positions entirely in Q1. It’s worth mentioning that Matthew Moskey’s Tiresias Capital said goodbye to the largest stake of all the hedgies we key on, valued at about $16.3 million in stock., and Thomas Steyer of Farallon Capital was right behind this move, as the fund dropped about $2.2 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 3 funds in Q1.
What do corporate executives and insiders think about Cymer, Inc. (NASDAQ:CYMI)?
Bullish insider trading is most useful when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time frame, Cymer, Inc. (NASDAQ:CYMI) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the results exhibited by our strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Cymer, Inc. (NASDAQ:CYMI) is no exception.