Focus Media Holding Limited (ADR) (NASDAQ:FMCN) investors should be aware of a decrease in support from the world's most elite money managers in recent months.
In the financial world, there are dozens of gauges investors can use to watch their holdings. A pair of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace the market by a very impressive amount (see just how much).
Equally as important, bullish insider trading activity is a second way to break down the investments you're interested in. As the old adage goes: there are a number of reasons for an upper level exec to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this tactic if shareholders understand what to do (learn more here).
With all of this in mind, let's take a peek at the key action regarding Focus Media Holding Limited (ADR) (NASDAQ:FMCN).
At the end of the first quarter, a total of 26 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter. With the smart money's capital changing hands, there exists an "upper tier" of notable hedge fund managers who were increasing their holdings significantly.
According to our comprehensive database, Rob Citrone's Discovery Capital Management had the biggest position in Focus Media Holding Limited (ADR) (NASDAQ:FMCN), worth close to $147.3 million, comprising 2% of its total 13F portfolio. Coming in second is Lei Zhang of Hillhouse Capital Management, with a $103.4 million position; the fund has 15% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Nick Niell's Arrowgrass Capital Partners, Matthew Halbower's Pentwater Capital Management and Jim Simons's Renaissance Technologies.
Seeing as Focus Media Holding Limited (ADR) (NASDAQ:FMCN) has faced declining sentiment from the entirety of the hedge funds we track, we can see that there exists a select few funds that slashed their entire stakes in Q1. It's worth mentioning that Brian Taylor's Pine River Capital Management dropped the biggest investment of all the hedgies we monitor, comprising about $54 million in call options, and Panayotis Takis Sparaggis of Alkeon Capital Management was right behind this move, as the fund cut about $40.3 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Bullish insider trading is most useful when the company we're looking at has experienced transactions within the past 180 days. Over the latest half-year time period, Focus Media Holding Limited (ADR) (NASDAQ:FMCN) has experienced zero unique insiders buying, 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 Focus Media Holding Limited (ADR) (NASDAQ:FMCN). These stocks are Monster Worldwide, Inc. (NYSE:MWW), WPP PLC (ADR) (NASDAQ:WPPGY), Omnicom Group Inc. (NYSE:OMC), Interpublic Group of Companies Inc (NYSE:IPG), and Lamar Advertising Co (NASDAQ:LAMR). This group of stocks are in the advertising agencies industry and their market caps resemble FMCN's market cap.