This Metric Says You Are Smart to Sell SunPower Corporation (NASDAQ:SPWR)

SunPower Corporation (NASDAQ:SPWR) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. SPWR investors should pay attention to a decrease in activity from the world’s largest hedge funds recently. There were 13 hedge funds in our database with SPWR positions at the end of the previous quarter.

In the financial world, there are plenty of metrics market participants can use to track the equity markets. A couple of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform the market by a significant amount (see just how much).

SunPower Corporation (NASDAQ:SPWR)Equally as integral, positive insider trading sentiment is a second way to break down the investments you’re interested in. Just as you’d expect, there are plenty of reasons for a bullish insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Several academic studies have demonstrated the valuable potential of this strategy if investors understand what to do (learn more here).

With all of this in mind, we’re going to take a gander at the key action encompassing SunPower Corporation (NASDAQ:SPWR).

What have hedge funds been doing with SunPower Corporation (NASDAQ:SPWR)?

Heading into 2013, a total of 9 of the hedge funds we track held long positions in this stock, a change of -31% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes considerably.

Of the funds we track, Chuck Royce’s Royce & Associates had the biggest position in SunPower Corporation (NASDAQ:SPWR), worth close to $9 million, accounting for 0% of its total 13F portfolio. Sitting at the No. 2 spot is Philip Hempleman of Ardsley Partners, with a $7 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include John A. Levin’s Levin Capital Strategies, Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.

Because SunPower Corporation (NASDAQ:SPWR) has faced declining sentiment from hedge fund managers, it’s safe to say that there exists a select few fund managers that elected to cut their full holdings heading into 2013. At the top of the heap, Peter J. Eichler Jr.’s Aletheia Research and Management dropped the largest stake of all the hedgies we watch, comprising close to $6 million in stock.. Jim Simons’s fund, Renaissance Technologies, also dumped its stock, about $1 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 4 funds heading into 2013.

How are insiders trading SunPower Corporation (NASDAQ:SPWR)?

Insider buying is best served when the company in focus has experienced transactions within the past half-year. Over the last six-month time period, SunPower Corporation (NASDAQ:SPWR) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

With the results shown by our studies, retail investors must always pay attention to hedge fund and insider trading sentiment, and SunPower Corporation (NASDAQ:SPWR) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

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!