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Hedge Funds Are Selling IMAX Corporation (USA) (NYSE:IMAX)

IMAX Corporation (USA) (NYSE:IMAX) investors should pay attention to a decrease in support from the world’s most elite money managers lately.

IMAX Corporation (USA) (NYSE:IMAX)

In today’s marketplace, there are dozens of metrics shareholders can use to analyze Mr. Market. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outclass their index-focused peers by a solid margin (see just how much).

Just as important, bullish insider trading activity is a second way to parse down the world of equities. There are plenty of motivations for an insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if you know what to do (learn more here).

With these “truths” under our belt, let’s take a glance at the key action encompassing IMAX Corporation (USA) (NYSE:IMAX).

How have hedgies been trading IMAX Corporation (USA) (NYSE:IMAX)?

Heading into 2013, a total of 19 of the hedge funds we track were long in this stock, a change of -5% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes considerably.

Of the funds we track, Brett Barakett’s Tremblant Capital had the biggest position in IMAX Corporation (USA) (NYSE:IMAX), worth close to $66 million, accounting for 3% of its total 13F portfolio. Sitting at the No. 2 spot is Alydar Capital, managed by John Murphy, which held a $49 million position; 0.7% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Glenn Russell Dubin’s Highbridge Capital Management, Stuart Peterson’s Artis Capital Management and Ken Griffin’s Citadel Investment Group.

Since IMAX Corporation (USA) (NYSE:IMAX) has witnessed falling interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few money managers who were dropping their full holdings heading into 2013. At the top of the heap, Paul Reeder and Edward Shapiro’s PAR Capital Management said goodbye to the biggest investment of the “upper crust” of funds we watch, valued at about $7 million in stock.. Guru Ramakrishnan’s fund, Meru Capital, also dropped its stock, about $6 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 1 funds heading into 2013.

What do corporate executives and insiders think about IMAX Corporation (USA) (NYSE:IMAX)?

Insider purchases made by high-level executives is most useful when the company in question has seen transactions within the past six months. Over the latest six-month time period, IMAX Corporation (USA) (NYSE:IMAX) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

With the results shown by our research, retail investors should always watch hedge fund and insider trading sentiment, and IMAX Corporation (USA) (NYSE:IMAX) 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.

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