Nokia Corporation (ADR) (NYSE:NOK) has experienced a decrease in hedge fund sentiment in recent months.
In the 21st century investor’s toolkit, there are a multitude of gauges investors can use to analyze their holdings. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can beat the market by a significant amount (see just how much).
Just as key, positive insider trading sentiment is a second way to parse down the marketplace. Just as you’d expect, there are many motivations for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the impressive potential of this tactic if shareholders know what to do (learn more here).
Keeping this in mind, let’s take a look at the key action encompassing Nokia Corporation (ADR) (NYSE:NOK).
What have hedge funds been doing with Nokia Corporation (ADR) (NYSE:NOK)?
In preparation for this year, a total of 12 of the hedge funds we track held long positions in this stock, a change of -20% from the third quarter. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital had the most valuable position in Nokia Corporation (ADR) (NYSE:NOK), worth close to $48.4 million, accounting for 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Chou Associates Management, managed by Francis Chou, which held a $19.8 million position; 5.2% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Philippe Laffont’s Coatue Management, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.
Because Nokia Corporation (ADR) (NYSE:NOK) has witnessed declining sentiment from the aggregate hedge fund industry, we can see that there were a few fund managers that elected to cut their positions entirely in Q4. Interestingly, Guru Ramakrishnan’s Meru Capital cut the largest investment of all the hedgies we track, comprising an estimated $1.5 million in stock.. Himanshu H. Shah’s fund, Shah Capital Management, also cut its stock, about $0.8 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 3 funds in Q4.
Insider trading activity in Nokia Corporation (ADR) (NYSE:NOK)
Insider trading activity, especially when it’s bullish, is most useful when the company in focus has seen transactions within the past six months. Over the last half-year time frame, Nokia Corporation (ADR) (NYSE:NOK) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Nokia Corporation (ADR) (NYSE:NOK). These stocks are JDS Uniphase Corp (NASDAQ:JDSU), Echostar Corporation (NASDAQ:SATS), Ericsson (ADR) (NASDAQ:ERIC), Harris Corporation (NYSE:HRS), and Motorola Solutions Inc (NYSE:MSI). All of these stocks are in the communication equipment industry and their market caps match NOK’s market cap.