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Should You Avoid DSP Group, Inc. (DSPG)?

DSP Group, Inc. (NASDAQ:DSPG)DSP Group, Inc. (NASDAQ:DSPG) has seen a decrease in activity from the world’s largest hedge funds lately; stagnancy is negative in our experience.

To most shareholders, hedge funds are viewed as slow, outdated financial tools of the past. While there are over 8000 funds with their doors open today, we hone in on the top tier of this club, around 450 funds. It is widely believed that this group controls the lion’s share of the smart money’s total asset base, and by tracking their top stock picks, we have unsheathed a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Equally as beneficial, bullish insider trading sentiment is a second way to parse down the stock market universe. As the old adage goes: there are a variety of motivations for a bullish insider to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this strategy if “monkeys” know where to look (learn more here).

Keeping this in mind, let’s take a glance at the key action surrounding DSP Group, Inc. (NASDAQ:DSPG).

Hedge fund activity in DSP Group, Inc. (NASDAQ:DSPG)

Heading into Q2, a total of 8 of the hedge funds we track held long positions in this stock, a change of 0% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings significantly.

When looking at the hedgies we track, Jeffrey Smith’s Starboard Value LP had the largest position in DSP Group, Inc. (NASDAQ:DSPG), worth close to $17.9 million, comprising 1.6% of its total 13F portfolio. On Starboard Value LP’s heels is Brett Hendrickson of Nokomis Capital, with a $11.2 million position; 3.5% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Jim Roumell’s Roumell Asset Management, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.

What do corporate executives and insiders think about DSP Group, Inc. (NASDAQ:DSPG)?

Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past six months. Over the last half-year time frame, DSP Group, Inc. (NASDAQ:DSPG) has experienced 4 unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results demonstrated by the aforementioned studies, retail investors must always watch hedge fund and insider trading activity, and DSP Group, Inc. (NASDAQ:DSPG) is no exception.

Click here to learn why you should track hedge funds

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