Giant Interactive Group Inc (ADR) (GA): Are Hedge Funds Right About This Stock?

Page 1 of 2

What’s a smart Giant Interactive Group Inc (ADR) (NYSE:GA) investor to do?

In the 21st century investor’s toolkit, there are dozens of indicators market participants can use to analyze their holdings. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can outclass the S&P 500 by a solid amount (see just how much).

Equally as useful, bullish insider trading sentiment is a second way to analyze the marketplace. Just as you’d expect, there are a number of motivations for an insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if you understand what to do (learn more here).

Furthermore, let’s examine the latest info surrounding Giant Interactive Group Inc (ADR) (NYSE:GA).

Hedge fund activity in Giant Interactive Group Inc (ADR) (NYSE:GA)

In preparation for the third quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of -8% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings meaningfully.

Giant Interactive Group Inc (ADR) (NYSE:GA)When using filings from the hedgies we track, Ken Griffin’s Citadel Investment Group had the largest position in Giant Interactive Group Inc (ADR) (NYSE:GA), worth close to $23.9 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Alex Sacerdote of Whale Rock Capital Management, with a $13.7 million position; the fund has 3.1% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Scott Sinclair and Laurence Chang’s Cascabel Management, Jim Simons’s Renaissance Technologies and Robert B. Gillam’s McKinley Capital Management.

Because Giant Interactive Group Inc (ADR) (NYSE:GA) has experienced declining interest from upper-tier hedge fund managers, logic holds that there were a few hedge funds that decided to sell off their full holdings heading into Q2. It’s worth mentioning that Israel Englander’s Millennium Management cut the largest investment of the 450+ funds we track, valued at close to $0.9 million in stock. Bruce Kovner’s fund, Caxton Associates LP, also said goodbye to its stock, about $0.2 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 1 funds heading into Q2.

How are insiders trading Giant Interactive Group Inc (ADR) (NYSE:GA)?

Bullish insider trading is most useful when the company in focus has seen transactions within the past six months. Over the latest half-year time frame, Giant Interactive Group Inc (ADR) (NYSE:GA) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Giant Interactive Group Inc (ADR) (NYSE:GA). These stocks are The Advisory Board Company (NASDAQ:ABCO), SYNNEX Corporation (NYSE:SNX), Healthcare Services Group, Inc. (NASDAQ:HCSG), Fair Isaac Corporation (NYSE:FICO), and Shutterstock Inc (NYSE:SSTK). This group of stocks are the members of the business services industry and their market caps are similar to GA’s market cap.

Page 1 of 2