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Hedge Funds Are Selling Sony Corporation (ADR) (SNE) – Spectrum Brands Holdings, Inc. (SPB), Fabrinet (FN)

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Sony Corporation (ADR) (NYSE:SNE) was in 9 hedge funds’ portfolio at the end of December. SNE investors should pay attention to a decrease in support from the world’s most elite money managers of late. There were 9 hedge funds in our database with SNE holdings at the end of the previous quarter.

Sony Corporation (ADR) (NYSE:SNE)

If you’d ask most traders, hedge funds are viewed as worthless, old investment vehicles of yesteryear. While there are greater than 8000 funds trading at present, we hone in on the elite of this club, around 450 funds. It is estimated that this group controls the majority of the hedge fund industry’s total asset base, and by watching their best equity investments, we have revealed a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per 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 topped the S&P 500 index by 24 percentage points in 7 months (see the details here).

Just as important, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are a number of stimuli for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this method if piggybackers know where to look (learn more here).

Now, we’re going to take a glance at the recent action encompassing Sony Corporation (ADR) (NYSE:SNE).

What have hedge funds been doing with Sony Corporation (ADR) (NYSE:SNE)?

At year’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly.

Of the funds we track, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the most valuable position in Sony Corporation (ADR) (NYSE:SNE). Arrowstreet Capital has a $14 million position in the stock, comprising 0.1% of its 13F portfolio. On Arrowstreet Capital’s heels is Jim Simons of Renaissance Technologies, with a $10 million position; 0.1% of its 13F portfolio is allocated to the company. Other peers that are bullish include D. E. Shaw’s D E Shaw, John Overdeck and David Siegel’s Two Sigma Advisors and Israel Englander’s Millennium Management.

Since Sony Corporation (ADR) (NYSE:SNE) has faced falling interest from the smart money, we can see that there lies a certain “tier” of money managers who were dropping their entire stakes heading into 2013. Intriguingly, David Costen Haley’s HBK Investments said goodbye to the biggest investment of all the hedgies we monitor, comprising about $1 million in stock., and Joe DiMenna of ZWEIG DIMENNA PARTNERS was right behind this move, as the fund dropped about $0 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Sony Corporation (ADR) (NYSE:SNE)?

Insider purchases made by high-level executives is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time period, Sony Corporation (ADR) (NYSE:SNE) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Sony Corporation (ADR) (NYSE:SNE). These stocks are Universal Electronics Inc (NASDAQ:UEIC), Fabrinet (NYSE:FN), Spectrum Brands Holdings, Inc. (NYSE:SPB), Harman International Industries Inc./DE/ (NYSE:HAR), and Panasonic Corporation (ADR) (NYSE:PC). This group of stocks belong to the electronic equipment industry and their market caps resemble SNE’s market cap.

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