Ericsson (ADR) (NASDAQ:ERIC) was in 16 hedge funds’ portfolio at the end of March. ERIC shareholders have witnessed an increase in enthusiasm from smart money recently. There were 15 hedge funds in our database with ERIC positions at the end of the previous quarter.
In today’s marketplace, there are a multitude of methods market participants can use to analyze the equity markets. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outperform the S&P 500 by a significant margin (see just how much).
Just as important, bullish insider trading sentiment is a second way to parse down the financial markets. Obviously, there are lots of incentives for a bullish insider to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if shareholders understand where to look (learn more here).
Consequently, it’s important to take a peek at the key action encompassing Ericsson (ADR) (NASDAQ:ERIC).
How have hedgies been trading Ericsson (ADR) (NASDAQ:ERIC)?
At the end of the first quarter, a total of 16 of the hedge funds we track were long in this stock, a change of 7% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings substantially.
According to our comprehensive database, Valinor Management LLC, managed by David Gallo, holds the most valuable position in Ericsson (ADR) (NASDAQ:ERIC). Valinor Management LLC has a $43.4 million position in the stock, comprising 1.9% of its 13F portfolio. Sitting at the No. 2 spot is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $31.8 million position; 0.3% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include Lee Ainslie’s Maverick Capital, Israel Englander’s Millennium Management and Ken Fisher’s Fisher Asset Management.
As industrywide interest jumped, some big names have jumped into Ericsson (ADR) (NASDAQ:ERIC) headfirst. Empire Capital Management, managed by Scott Fine and Peter Richards, created the biggest position in Ericsson (ADR) (NASDAQ:ERIC). Empire Capital Management had 5 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $3.7 million investment in the stock during the quarter. The other funds with brand new ERIC positions are Steven Cohen’s SAC Capital Advisors and Matthew Tewksbury’s Stevens Capital Management.
What do corporate executives and insiders think about Ericsson (ADR) (NASDAQ:ERIC)?
Insider purchases made by high-level executives is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Ericsson (ADR) (NASDAQ:ERIC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Ericsson (ADR) (NASDAQ:ERIC). These stocks are Echostar Corporation (NASDAQ:SATS), Harris Corporation (NYSE:HRS), Nokia Corporation (ADR) (NYSE:NOK), QUALCOMM, Inc. (NASDAQ:QCOM), and Motorola Solutions Inc (NYSE:MSI). This group of stocks are in the communication equipment industry and their market caps are closest to ERIC’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Echostar Corporation (NASDAQ:SATS)||25||0||8|
|Harris Corporation (NYSE:HRS)||17||0||7|
|Nokia Corporation (ADR) (NYSE:NOK)||14||0||0|
|QUALCOMM, Inc. (NASDAQ:QCOM)||96||0||17|
|Motorola Solutions Inc (NYSE:MSI)||39||0||6|
With the returns shown by the aforementioned research, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Ericsson (ADR) (NASDAQ:ERIC) is an important part of this process.