Should You Follow the Smart Money Into Silicon Motion Technology Corp. (ADR) (SIMO)?

Consequently, key hedge funds have jumped into Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) headfirst. Millennium Management initiated the most valuable position in Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO). According to regulatory filings, the fund had $24.1 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also initiated a $5.3 million position during the quarter. The following funds were also among the new SIMO investors: David Costen Haley’s HBK Investments and Ken Hahn’s Quentec Asset Management.

Let’s also examine hedge fund activity in other stocks similar to Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO). We will take a look at WD-40 Company (NASDAQ:WDFC), IAMGOLD Corporation (USA) (NYSE:IAG), Trustmark Corp (NASDAQ:TRMK), and Intra-Cellular Therapies Inc (NASDAQ:ITCI). This group of stocks’ market caps are similar to SIMO’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $254 million in SIMO’s case. Intra-Cellular Therapies Inc (NASDAQ:ITCI) is the most popular stock in this table. On the other hand Trustmark Corp (NASDAQ:TRMK) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None