In the eyes of many of your peers, hedge funds are viewed as delayed, outdated financial tools of a period lost to current times. Although there are more than 8,000 hedge funds with their doors open currently, this site focuses on the elite of this club, close to 525 funds. Analysts calculate that this group controls the lion's share of the smart money's total capital, and by keeping an eye on their highest quality investments, we've uncovered a number of investment strategies that have historically outperformed the S&P 500. Our small-cap hedge fund strategy beat 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 topped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as crucial, bullish insider trading sentiment is another way to look at the financial markets. Just as you'd expect, there are plenty of reasons for a corporate insider to sell shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).
Thus, we're going to analyze the latest info about Linear Technology Corporation (NASDAQ:LLTC).
At Q2's end, a total of 21 of the hedge funds we track were long in this stock, a change of -9% from one quarter earlier. With hedge funds' capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their stakes significantly.
According to our 13F database, First Eagle Investment Management, managed by Matt McLennan, holds the biggest position in Linear Technology Corporation (NASDAQ:LLTC). First Eagle Investment Management has a $429.5 million position in the stock, comprising 1.3% of its 13F portfolio. On First Eagle Investment Management's heels is Renaissance Technologies, managed by Jim Simons, which held a $367.4 million position; 1% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Ric Dillon's Diamond Hill Capital, David Harding's Winton Capital Management and Christopher Lord's Criterion Capital.
Judging by the fact that Linear Technology Corporation (NASDAQ:LLTC) has experienced a fall in interest from the top-tier hedge fund industry, it's safe to say that there were a few fund managers that elected to cut their full holdings in Q1. It's worth mentioning that George Soros's Soros Fund Management said goodbye to the largest position of the 450+ funds we key on, valued at about $19.1 million in stock. Ken Griffin's fund, Citadel Investment Group, also dropped its stock, about $7.4 million worth. These transactions are important to note, as total hedge fund interest fell by 2 funds in Q1.
Insider buying made by high-level executives is particularly usable when the company in question has experienced transactions within the past half-year. Over the latest 180-day time period, Linear Technology Corporation (NASDAQ:LLTC) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also review the relationship between both of these indicators in other stocks similar to Linear Technology Corporation (NASDAQ:LLTC). These stocks are LSI Corp (NASDAQ:LSI), ARM Holdings plc (ADR) (NASDAQ:ARMH), Altera Corporation (NASDAQ:ALTR), Microchip Technology Inc. (NASDAQ:MCHP), and NVIDIA Corporation (NASDAQ:NVDA). This group of stocks are in the semiconductor - specialized industry and their market caps are closest to LLTC's market cap.