Should Entegris Inc (NASDAQ:ENTG) investors track the following data?
To many traders, hedge funds are assumed to be overrated, old financial vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds trading today, this site focuses on the top tier of this group, close to 525 funds. Analysts calculate that this group controls the majority of the hedge fund industry's total assets, and by tracking their best investments, we've deciphered a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as useful, positive insider trading sentiment is another way to analyze the stock market universe. As the old adage goes: there are many motivations for an executive to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this strategy if investors know what to do (learn more here).
Furthermore, let's discuss the newest info surrounding Entegris Inc (NASDAQ:ENTG).
At the end of the second quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of 13% from one quarter earlier. With hedge funds' capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were upping their stakes considerably.
Consequently, specific money managers have been driving this bullishness. GMT Capital, managed by Thomas E. Claugus, established the biggest position in Entegris Inc (NASDAQ:ENTG). GMT Capital had 126 million invested in the company at the end of the quarter. Chuck Royce's Royce & Associates also initiated a $54 million position during the quarter. The following funds were also among the new ENTG investors: D. E. Shaw's D E Shaw, Ken Grossman and Glen Schneider's SG Capital Management, and Brian Ashford-Russell and Tim Woolley's Polar Capital.
Insider buying is particularly usable when the company we're looking at has experienced transactions within the past six months. Over the latest 180-day time period, Entegris Inc (NASDAQ:ENTG) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also review the relationship between both of these indicators in other stocks similar to Entegris Inc (NASDAQ:ENTG). These stocks are Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), ASM International NV (ADR) (NASDAQ:ASMI), Tessera Technologies, Inc. (NASDAQ:TSRA), Ultratech, Inc. (NASDAQ:UTEK), and Veeco Instruments Inc. (NASDAQ:VECO). All of these stocks are in the semiconductor equipment & materials industry and their market caps are closest to ENTG's market cap.