Sigma-Aldrich Corporation (NASDAQ:SIAL) was in 15 hedge funds’ portfolio at the end of March. SIAL has seen a decrease in activity from the world’s largest hedge funds in recent months. There were 15 hedge funds in our database with SIAL positions at the end of the previous quarter.
In today’s marketplace, there are a multitude of methods shareholders can use to monitor publicly traded companies. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can outpace the S&P 500 by a significant amount (see just how much).
Just as important, bullish insider trading sentiment is another way to parse down the stock market universe. As the old adage goes: there are lots of reasons for an insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this strategy if “monkeys” know where to look (learn more here).
Consequently, it’s important to take a look at the recent action encompassing Sigma-Aldrich Corporation (NASDAQ:SIAL).
How have hedgies been trading Sigma-Aldrich Corporation (NASDAQ:SIAL)?
In preparation for this quarter, a total of 15 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes substantially.
According to our comprehensive database, PEAK6 Capital Management, managed by Matthew Hulsizer, holds the biggest position in Sigma-Aldrich Corporation (NASDAQ:SIAL). PEAK6 Capital Management has a $148 million call position in the stock, comprising 0.8% of its 13F portfolio. Coming in second is Robert Joseph Caruso of Select Equity Group, with a $131.9 million position; 1.8% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include Donald Yacktman’s Yacktman Asset Management, Jim Simons’s Renaissance Technologies and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Since Sigma-Aldrich Corporation (NASDAQ:SIAL) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of funds who were dropping their entire stakes in Q1. Interestingly, Donald Chiboucis’s Columbus Circle Investors cut the biggest stake of the “upper crust” of funds we watch, worth an estimated $9.4 million in stock., and Steven Cohen of SAC Capital Advisors was right behind this move, as the fund sold off about $3.7 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Sigma-Aldrich Corporation (NASDAQ:SIAL)?
Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past six months. Over the last half-year time frame, Sigma-Aldrich Corporation (NASDAQ:SIAL) has seen 2 unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Sigma-Aldrich Corporation (NASDAQ:SIAL). These stocks are The Valspar Corporation (NYSE:VAL), Albemarle Corporation (NYSE:ALB), W.R. Grace & Co. (NYSE:GRA), International Flavors & Fragrances Inc (NYSE:IFF), and Westlake Chemical Corporation (NYSE:WLK). All of these stocks are in the specialty chemicals industry and their market caps match SIAL’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| The Valspar Corporation (NYSE:VAL) | 18 | 1 | 3 |
| Albemarle Corporation (NYSE:ALB) | 17 | 0 | 2 |
| W.R. Grace & Co. (NYSE:GRA) | 46 | 0 | 6 |
| International Flavors & Fragrances Inc (NYSE:IFF) | 18 | 0 | 5 |
| Westlake Chemical Corporation (NYSE:WLK) | 29 | 0 | 13 |
With the returns demonstrated by our studies, retail investors must always watch hedge fund and insider trading activity, and Sigma-Aldrich Corporation (NASDAQ:SIAL) shareholders fit into this picture quite nicely.
