If you were to ask many of your fellow readers, hedge funds are seen as bloated, old investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds in operation today, Insider Monkey aim at the bigwigs of this club, about 525 funds. Analysts calculate that this group controls most of the hedge fund industry’s total capital, and by paying attention to their best equity investments, we’ve figured out a number of investment strategies that have historically beaten the S&P 500. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per 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 topped the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as key, positive insider trading sentiment is a second way to look at the stock market universe. Just as you’d expect, there are many incentives for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this method if piggybackers understand where to look (learn more here).
Furthermore, it’s important to examine the recent info surrounding Sterlite Industries India Limited (ADR) (NYSE:SLT).
What have hedge funds been doing with Sterlite Industries India Limited (ADR) (NYSE:SLT)?
At the end of the second quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of -13% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes meaningfully.
When using filings from the hedgies we track, Ken Griffin’s Citadel Investment Group had the most valuable position in Sterlite Industries India Limited (ADR) (NYSE:SLT), worth close to $1.3 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Thomas Bailard’s Bailard Inc, John Overdeck and David Siegel’s Two Sigma Advisors and Jim Simons’s Renaissance Technologies.
What do corporate executives and insiders think about Sterlite Industries India Limited (ADR) (NYSE:SLT)?
Legal insider trading, particularly when it’s bullish, is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the latest 180-day time period, Sterlite Industries India Limited (ADR) (NYSE:SLT) has experienced 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 Sterlite Industries India Limited (ADR) (NYSE:SLT). These stocks are Lihua International Inc (NASDAQ:LIWA), Augusta Resource Corp. (USA) (NYSEAMEX:AZC), Southern Copper Corp (NYSE:SCCO), and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). All of these stocks are in the copper industry and their market caps match SLT’s market cap.