OmniVision Technologies, Inc. (NASDAQ:OVTI) investors should be aware of a decrease in hedge fund interest in recent months.
In today’s marketplace, there are dozens of methods investors can use to track the equity markets. A couple of the most innovative 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 investment managers can outpace the S&P 500 by a very impressive amount (see just how much).
Equally as key, bullish insider trading sentiment is a second way to break down the world of equities. As the old adage goes: there are plenty of incentives for a corporate insider to drop shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).
Now, let’s take a look at the key action surrounding OmniVision Technologies, Inc. (NASDAQ:OVTI).
How are hedge funds trading OmniVision Technologies, Inc. (NASDAQ:OVTI)?
At year’s end, a total of 17 of the hedge funds we track held long positions in this stock, a change of 0% from the third quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings considerably.
Of the funds we track, Ken Fisher’s Fisher Asset Management had the biggest position in OmniVision Technologies, Inc. (NASDAQ:OVTI), worth close to $42 million, comprising 0.1% of its total 13F portfolio. On Fisher Asset Management’s heels is Chuck Royce of Royce & Associates, with a $34 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Joseph A. Jolson’s Harvest Capital Strategies, Daniel Benton’s Andor Capital Management and Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management.
Seeing as OmniVision Technologies, Inc. (NASDAQ:OVTI) has witnessed a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of fund managers that slashed their positions entirely at the end of the year. Intriguingly, Charles Clough’s Clough Capital Partners sold off the biggest stake of the “upper crust” of funds we watch, worth an estimated $6 million in stock., and SAC Subsidiary of CR Intrinsic Investors was right behind this move, as the fund sold off about $4 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in OmniVision Technologies, Inc. (NASDAQ:OVTI)
Insider purchases made by high-level executives is most useful when the company in question has seen transactions within the past 180 days. Over the latest six-month time frame, OmniVision Technologies, Inc. (NASDAQ:OVTI) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to OmniVision Technologies, Inc. (NASDAQ:OVTI). These stocks are InvenSense Inc (NYSE:INVN), Aeroflex Holding Corp. (NYSE:ARX), TriQuint Semiconductor (NASDAQ:TQNT), Cabot Microelectronics Corporation (NASDAQ:CCMP), and EZchip Semiconductor Ltd. (NASDAQ:EZCH). This group of stocks belong to the semiconductor – integrated circuits industry and their market caps are closest to OVTI’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|InvenSense Inc (NYSE:INVN)||11||0||6|
|Aeroflex Holding Corp. (NYSE:ARX)||7||2||0|
|TriQuint Semiconductor (NASDAQ:TQNT)||12||5||1|
|Cabot Microelectronics Corporation (NASDAQ:CCMP)||5||0||13|
|EZchip Semiconductor Ltd. (NASDAQ:EZCH)||7||0||0|
With the returns exhibited by the aforementioned studies, retail investors must always watch hedge fund and insider trading activity, and OmniVision Technologies, Inc. (NASDAQ:OVTI) is no exception.
Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.