Hedge Funds Are Selling Microchip Technology Inc. (MCHP)

Page 1 of 2

If you were to ask many investors, hedge funds are assumed to be overrated, old investment tools of an era lost to time. Although there are over 8,000 hedge funds with their doors open today, this site focuses on the masters of this group, close to 525 funds. Analysts calculate that this group controls most of all hedge funds’ total assets, and by watching their highest quality investments, we’ve found a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outstripped 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 a sample of our picks).

Just as key, positive insider trading sentiment is a second way to look at the stock market universe. There are a variety of incentives for an executive to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this tactic if piggybackers understand what to do (learn more here).

Keeping this in mind, we’re going to study the newest info for Microchip Technology Inc. (NASDAQ:MCHP).

Hedge fund activity in Microchip Technology Inc. (NASDAQ:MCHP)

At Q2′s end, a total of 22 of the hedge funds we track held long positions in this stock, a change of -8% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their stakes meaningfully.

Microchip Technology Inc. (NASDAQ:MCHP)According to our 13F database, Matthew Hulsizer’s PEAK6 Capital Management had the biggest position in Microchip Technology Inc. (NASDAQ:MCHP), worth close to $1.8754 billion, accounting for 7% of its total 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $66.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC and Michael Platt and William Reeves’s BlueCrest Capital Mgmt..

Due to the fact Microchip Technology Inc. (NASDAQ:MCHP) has experienced declining interest from the smart money’s best and brightest, it’s easy to see that there is a sect of hedgies that elected to cut their positions entirely heading into Q2. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management dropped the biggest position of the 450+ funds we watch, worth about $36.7 million in stock, and Charles Clough of Clough Capital Partners was right behind this move, as the fund sold off about $15.5 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds heading into Q2.

What have insiders been doing with Microchip Technology Inc. (NASDAQ:MCHP)?

Legal insider trading, particularly when it’s bullish, is best served when the company we’re looking at has seen transactions within the past 180 days. Over the latest six-month time frame, Microchip Technology Inc. (NASDAQ:MCHP) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Microchip Technology Inc. (NASDAQ:MCHP). These stocks are ARM Holdings plc (ADR) (NASDAQ:ARMH), LSI Corp (NASDAQ:LSI), Altera Corporation (NASDAQ:ALTR), Linear Technology Corporation (NASDAQ:LLTC), and NVIDIA Corporation (NASDAQ:NVDA). This group of stocks are the members of the semiconductor – specialized industry and their market caps resemble MCHP’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!