Is Youku Tudou Inc (ADR) (NYSE:YOKU) ready to raly soon? Prominent investors are in a pessimistic mood. The number of long hedge fund positions decreased by 1 lately.
In the financial world, there are tons of indicators market participants can use to analyze publicly traded companies. Some of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top money managers can beat the S&P 500 by a very impressive amount (see just how much).
Equally as integral, positive insider trading sentiment is another way to parse down the world of equities. Just as you'd expect, there are a number of stimuli for an upper level exec to downsize shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the valuable potential of this strategy if "monkeys" know what to do (learn more here).
With these "truths" under our belt, let's take a peek at the key action encompassing Youku Tudou Inc (ADR) (NYSE:YOKU).
In preparation for this year, a total of 14 of the hedge funds we track held long positions in this stock, a change of -7% from the previous quarter. With hedge funds' capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, Brookside Capital, managed by Bain Capital, holds the biggest position in Youku Tudou Inc (ADR) (NYSE:YOKU). Brookside Capital has a $149 million position in the stock, comprising 3.3% of its 13F portfolio. Sitting at the No. 2 spot is Platinum Asset Management, managed by Kerr Neilson, which held a $104 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Some other peers that are bullish include Lee Ainslie's Maverick Capital, John Griffin's Blue Ridge Capital and Brett Barakett's Tremblant Capital.
Since Youku Tudou Inc (ADR) (NYSE:YOKU) has faced falling interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds that decided to sell off their full holdings heading into 2013. Interestingly, Ken Griffin's Citadel Investment Group dropped the largest stake of all the hedgies we monitor, comprising close to $14 million in stock., and SAC Subsidiary of CR Intrinsic Investors was right behind this move, as the fund cut about $3 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds heading into 2013.
Insider trading activity, especially when it's bullish, is most useful when the company we're looking at has seen transactions within the past 180 days. Over the last half-year time frame, Youku Tudou Inc (ADR) (NYSE:YOKU) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results exhibited by Insider Monkey's studies, everyday investors must always pay attention to hedge fund and insider trading activity, and Youku Tudou Inc (ADR) (NYSE:YOKU) is no exception.
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