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 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

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!