Super Micro Computer, Inc. (NASDAQ:SMCI) was in 6 hedge funds’ portfolio at the end of the fourth quarter of 2012. SMCI shareholders have witnessed a decrease in hedge fund interest in recent months. There were 10 hedge funds in our database with SMCI positions at the end of the previous quarter. We’ll also take a look at a cross-section between Super Micro and a few of its comparables, including Cisco Systems, Inc. (NASDAQ:CSCO), Nokia Corporation (ADR) (NYSE:NOK), and QUALCOMM, Inc. (NASDAQ:QCOM).
In the 21st century investor’s toolkit, there are a multitude of metrics market participants can use to watch publicly traded companies. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce the market by a solid amount (see just how much).
Equally as key, optimistic insider trading activity is a second way to parse down the financial markets. Just as you’d expect, there are a variety of motivations for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the useful potential of this tactic if you understand where to look (learn more here).
Consequently, let’s take a glance at the key action surrounding Super Micro Computer, Inc. (NASDAQ:SMCI).
How have hedgies been trading Super Micro Computer, Inc. (NASDAQ:SMCI)?
In preparation for this year, a total of 6 of the hedge funds we track held long positions in this stock, a change of -40% from the third quarter. With the smart money’s capital changing hands, 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 Super Micro Computer, Inc. (NASDAQ:SMCI). Royce & Associates has a $20 million position in the stock, comprising 0.1% of its 13F portfolio. On Royce & Associates’s heels is Ken Grossman and Glen Schneider of SG Capital Management, with a $2 million position; 0.9% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Paul Tudor Jones’s Tudor Investment Corp, Charles Davidson’s Wexford Capital and D. E. Shaw’s D E Shaw.
Because Super Micro Computer, Inc. (NASDAQ:SMCI) has experienced falling interest from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedge funds who were dropping their entire stakes heading into 2013. It’s worth mentioning that Brian Ashford-Russell and Tim Woolley’s Polar Capital dropped the largest stake of the 450+ funds we key on, valued at about $1 million in stock., and Jim Simons of Renaissance Technologies was right behind this move, as the fund sold off about $1 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 4 funds heading into 2013.
What have insiders been doing with Super Micro Computer, Inc. (NASDAQ:SMCI)?
Insider buying is at its handiest when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, Super Micro Computer, Inc. (NASDAQ:SMCI) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Super Micro Computer, Inc. (NASDAQ:SMCI). These stocks are Cisco Systems, Inc. (NASDAQ:CSCO), Nokia Corporation (ADR) (NYSE:NOK), QUALCOMM, Inc. (NASDAQ:QCOM), Extreme Networks, Inc (NASDAQ:EXTR), and Black Box Corporation (NASDAQ:BBOX). All of these stocks are in the networking & communication devices industry and their market caps resemble SMCI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cisco Systems, Inc. (NASDAQ:CSCO) | 58 | 0 | 10 |
| Nokia Corporation (ADR) (NYSE:NOK) | 12 | 0 | 0 |
| QUALCOMM, Inc. (NASDAQ:QCOM) | 89 | 0 | 16 |
| Extreme Networks, Inc (NASDAQ:EXTR) | 13 | 1 | 4 |
| Black Box Corporation (NASDAQ:BBOX) | 4 | 0 | 0 |
With the returns exhibited by our strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Super Micro Computer, Inc. (NASDAQ:SMCI) applies perfectly to this mantra.
Related tickers: Super Micro Computer, Inc. (NASDAQ:SMCI), Cisco Systems, Inc. (NASDAQ:CSCO), Nokia Corporation (ADR) (NYSE:NOK), QUALCOMM, Inc. (NASDAQ:QCOM), Extreme Networks, Inc (NASDAQ:EXTR), Black Box Corporation (NASDAQ:BBOX)
