Hedge Funds Are Dumping USA Mobility Inc (USMO)

USA Mobility Inc (NASDAQ:USMO) investors should be aware of a decrease in support from the world’s most elite money managers lately.

In the 21st century investor’s toolkit, there are dozens of indicators market participants can use to analyze the equity markets. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outclass the broader indices by a very impressive margin (see just how much).

USA Mobility Inc (NASDAQ:USMO)

Equally as key, bullish insider trading activity is another way to break down the financial markets. There are many incentives for a corporate insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the useful potential of this strategy if investors understand where to look (learn more here).

Now, we’re going to take a look at the recent action surrounding USA Mobility Inc (NASDAQ:USMO).

How are hedge funds trading USA Mobility Inc (NASDAQ:USMO)?

At the end of the fourth quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 0% from the third quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes considerably.

Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in USA Mobility Inc (NASDAQ:USMO). Renaissance Technologies has a $17.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is John Overdeck and David Siegel of Two Sigma Advisors, with a $1.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers with similar optimism include Chuck Royce’s Royce & Associates, Cliff Asness’s AQR Capital Management and Ken Griffin’s Citadel Investment Group.

Judging by the fact that USA Mobility Inc (NASDAQ:USMO) has faced falling interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of funds that elected to cut their entire stakes last quarter. At the top of the heap, Steven Cohen’s SAC Capital Advisors cut the biggest stake of the “upper crust” of funds we key on, comprising close to $0.2 million in stock. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about USA Mobility Inc (NASDAQ:USMO)?

Insider buying is particularly usable when the company in question has seen transactions within the past 180 days. Over the last six-month time period, USA Mobility Inc (NASDAQ:USMO) has experienced 1 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to USA Mobility Inc (NASDAQ:USMO). These stocks are Pendrell Corporation – Class A (NASDAQ:PCO), UTStarcom Holdings Corp (NASDAQ:UTSI), Anaren, Inc. (NASDAQ:ANEN), NTELOS Holdings Corp. (NASDAQ:NTLS), and Maxcom Telecomunic S.A.B. de C.V. (ADR) (NYSE:MXT). This group of stocks are the members of the wireless communications industry and their market caps are closest to USMO’s market cap.