Dolby Laboratories, Inc. (NYSE:DLB) was in 10 hedge funds’ portfolio at the end of the first quarter of 2013. DLB investors should be aware of a decrease in support from the world’s most elite money managers of late. There were 15 hedge funds in our database with DLB positions at the end of the previous quarter.
In today’s marketplace, there are plenty of metrics shareholders can use to watch the equity markets. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can beat their index-focused peers by a very impressive amount (see just how much).
Equally as integral, positive insider trading sentiment is a second way to break down the world of equities. Just as you’d expect, there are a number of reasons for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if piggybackers know where to look (learn more here).
With these “truths” under our belt, we’re going to take a peek at the latest action surrounding Dolby Laboratories, Inc. (NYSE:DLB).
What does the smart money think about Dolby Laboratories, Inc. (NYSE:DLB)?
At the end of the first quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of -33% from the first quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Dolby Laboratories, Inc. (NYSE:DLB). Royce & Associates has a $59.6 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $48.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers that hold long positions include Cliff Asness’s AQR Capital Management, Ken Griffin’s Citadel Investment Group and Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management.
Since Dolby Laboratories, Inc. (NYSE:DLB) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedgies who were dropping their positions entirely last quarter. At the top of the heap, Boaz Weinstein’s Saba Capital dropped the biggest investment of all the hedgies we monitor, totaling an estimated $5.5 million in stock., and Paul Tudor Jones of Tudor Investment Corp was right behind this move, as the fund dumped about $0.6 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 5 funds last quarter.
Insider trading activity in Dolby Laboratories, Inc. (NYSE:DLB)
Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the last six-month time frame, Dolby Laboratories, Inc. (NYSE:DLB) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Dolby Laboratories, Inc. (NYSE:DLB). These stocks are Amphenol Corporation (NYSE:APH), LG Display Co Ltd. (ADR) (NYSE:LPL), AVX Corporation (NYSE:AVX), Molex Incorporated (NASDAQ:MOLX), and Acuity Brands, Inc. (NYSE:AYI). All of these stocks are in the diversified electronics industry and their market caps are closest to DLB’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Amphenol Corporation (NYSE:APH)||17||0||15|
|LG Display Co Ltd. (ADR) (NYSE:LPL)||8||0||0|
|AVX Corporation (NYSE:AVX)||13||0||1|
|Molex Incorporated (NASDAQ:MOLX)||16||0||0|
|Acuity Brands, Inc. (NYSE:AYI)||17||0||4|
With the results demonstrated by the aforementioned research, everyday investors must always watch hedge fund and insider trading activity, and Dolby Laboratories, Inc. (NYSE:DLB) is no exception.