This Metric Says You Are Smart to Buy GameStop Corp. (GME)

Page 1 of 2

GameStop Corp. (NYSE:GME)GameStop Corp. (NYSE:GME) was in 26 hedge funds’ portfolio at the end of the first quarter of 2013. GME shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. There were 24 hedge funds in our database with GME positions at the end of the previous quarter.

According to most shareholders, hedge funds are seen as worthless, old investment tools of years past. While there are more than 8000 funds trading at the moment, we choose to focus on the masters of this club, around 450 funds. It is estimated that this group controls most of the hedge fund industry’s total asset base, and by monitoring their highest performing investments, we have discovered a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year 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 outperformed the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Equally as integral, bullish insider trading sentiment is a second way to break down the world of equities. Just as you’d expect, there are plenty of motivations for an executive to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this method if piggybackers know what to do (learn more here).

With these “truths” under our belt, it’s important to take a peek at the recent action encompassing GameStop Corp. (NYSE:GME).

Hedge fund activity in GameStop Corp. (NYSE:GME)

In preparation for this quarter, a total of 26 of the hedge funds we track held long positions in this stock, a change of 8% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the largest position in GameStop Corp. (NYSE:GME). Royce & Associates has a $137 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Cliff Asness of AQR Capital Management, with a $111.8 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include John Murphy’s Alydar Capital, Phill Gross and Robert Atchinson’s Adage Capital Management and John Murphy’s Alydar Capital.

Now, key hedge funds were breaking ground themselves. MAK Capital One, managed by Michael Kaufman, initiated the most outsized position in GameStop Corp. (NYSE:GME). MAK Capital One had 24.9 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $16 million investment in the stock during the quarter. The following funds were also among the new GME investors: Daniel S. Och’s OZ Management, Michael Platt and William Reeves’s BlueCrest Capital Mgmt., and Scott Scher & Michael Prober’s Clovis Capital Management.

Insider trading activity in GameStop Corp. (NYSE:GME)

Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time period, GameStop Corp. (NYSE:GME) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to GameStop Corp. (NYSE:GME). These stocks are RadioShack Corporation (NYSE:RSH), hhgregg, Inc. (NYSE:HGG), CONN’S, Inc. (NASDAQ:CONN), and Best Buy Co., Inc. (NYSE:BBY). All of these stocks are in the electronics stores industry and their market caps are closest to GME’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!