Focus Media Holding Limited (ADR) (NASDAQ:FMCN) has seen an increase in hedge fund sentiment recently.
At the moment, there are tons of gauges investors can use to analyze Mr. Market. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass the S&P 500 by a superb amount (see just how much).
Just as key, bullish insider trading activity is another way to parse down the stock market universe. Obviously, there are lots of motivations for an executive to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).
Consequently, we’re going to take a look at the latest action surrounding Focus Media Holding Limited (ADR) (NASDAQ:FMCN).
What does the smart money think about Focus Media Holding Limited (ADR) (NASDAQ:FMCN)?
At year’s end, a total of 22 of the hedge funds we track were long in this stock, a change of 38% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping 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 $140 million, comprising 2% of its total 13F portfolio. On Discovery Capital Management’s heels is Pine River Capital Management, managed by Brian Taylor, which held a $54 million call position; 0.9% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include Nick Niell’s Arrowgrass Capital Partners, Jim Simons’s Renaissance Technologies and Matthew Halbower’s Pentwater Capital Management.
As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Fir Tree, managed by Jeffrey Tannenbaum, created the largest position in Focus Media Holding Limited (ADR) (NASDAQ:FMCN). Fir Tree had 33 million invested in the company at the end of the quarter. Howard Guberman’s Gruss Asset Management also initiated a $18 million position during the quarter. The other funds with brand new FMCN positions are Paul Tudor Jones’s Tudor Investment Corp, Paul Glazer’s Glazer Capital, and Israel Englander’s Millennium Management.
How have insiders been trading Focus Media Holding Limited (ADR) (NASDAQ:FMCN)?
Insider buying is particularly usable when the company in focus has seen transactions within the past six months. Over the last 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).
With the returns demonstrated by the aforementioned research, everyday investors must always keep an eye on hedge fund and insider trading activity, and Focus Media Holding Limited (ADR) (NASDAQ:FMCN) shareholders fit into this picture quite nicely.
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