Corning Incorporated (NYSE:GLW) was in 40 hedge funds’ portfolio at the end of the first quarter of 2013. GLW investors should be aware of a decrease in activity from the world’s largest hedge funds of late. There were 42 hedge funds in our database with GLW holdings at the end of the previous quarter.
At the moment, there are a multitude of gauges shareholders can use to analyze their holdings. A pair of the most under-the-radar are hedge fund and insider trading activity. 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 S&P 500 by a very impressive amount (see just how much).
Just as key, positive insider trading sentiment is a second way to break down the marketplace. Just as you’d expect, there are lots of motivations for an insider to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).
Now, we’re going to take a glance at the latest action regarding Corning Incorporated (NYSE:GLW).
Hedge fund activity in Corning Incorporated (NYSE:GLW)
At the end of the first quarter, a total of 40 of the hedge funds we track were bullish in this stock, a change of -5% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the most valuable position in Corning Incorporated (NYSE:GLW). Arrowstreet Capital has a $216.3 million position in the stock, comprising 1.7% of its 13F portfolio. The second largest stake is held by Yacktman Asset Management, managed by Donald Yacktman, which held a $194.3 million position; 1% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include John A. Levin’s Levin Capital Strategies, Jim Simons’s Renaissance Technologies and Boaz Weinstein’s Saba Capital.
Seeing as Corning Incorporated (NYSE:GLW) has witnessed declining sentiment from the smart money, we can see that there is a sect of fund managers who sold off their positions entirely heading into Q2. Interestingly, William B. Gray’s Orbis Investment Management dropped the biggest position of all the hedgies we track, worth an estimated $89.4 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund said goodbye to about $19.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q2.
Insider trading activity in Corning Incorporated (NYSE:GLW)
Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the latest six-month time frame, Corning Incorporated (NYSE:GLW) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Corning Incorporated (NYSE:GLW). These stocks are Molex Incorporated (NASDAQ:MOLX), LG Display Co Ltd. (ADR) (NYSE:LPL), Amphenol Corporation (NYSE:APH), and TE Connectivity Ltd. (NYSE:TEL). This group of stocks are the members of the diversified electronics industry and their market caps match GLW’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Molex Incorporated (NASDAQ:MOLX)||16||0||0|
|LG Display Co Ltd. (ADR) (NYSE:LPL)||8||0||0|
|Amphenol Corporation (NYSE:APH)||17||0||15|
|TE Connectivity Ltd. (NYSE:TEL)||23||0||12|
With the returns demonstrated by the aforementioned time-tested strategies, everyday investors should always watch hedge fund and insider trading activity, and Corning Incorporated (NYSE:GLW) is an important part of this process.