Intel Corporation (NASDAQ:INTC) shareholders have witnessed a decrease in support from the world’s most elite money managers recently.
In today’s marketplace, there are a multitude of metrics investors can use to monitor stocks. 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 top picks of the elite money managers can trounce the broader indices by a very impressive margin (see just how much).
Just as important, optimistic insider trading sentiment is a second way to parse down the stock market universe. As the old adage goes: there are a variety of incentives for a corporate insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this strategy if piggybackers know what to do (learn more here).
With all of this in mind, it’s important to take a peek at the key action regarding Intel Corporation (NASDAQ:INTC).
What have hedge funds been doing with Intel Corporation (NASDAQ:INTC)?
Heading into 2013, a total of 48 of the hedge funds we track were long in this stock, a change of -4% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully.
Of the funds we track, Jean-Marie Eveillard’s First Eagle Investment Management had the most valuable position in Intel Corporation (NASDAQ:INTC), worth close to $519 million, comprising 1.9% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $403 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Ken Fisher’s Fisher Asset Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Phill Gross and Robert Atchinson’s Adage Capital Management.
Seeing as Intel Corporation (NASDAQ:INTC) has faced declining sentiment from the aggregate hedge fund industry, logic holds that there was a specific group of fund managers that slashed their positions entirely at the end of the year. Interestingly, Paul Ruddockáand Steve Heinz’s Lansdowne Partners dumped the largest investment of the 450+ funds we watch, valued at close to $161 million in stock.. Douglas W. Case’s fund, Advanced Investment Partners, also sold off its stock, about $14 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds at the end of the year.
How have insiders been trading Intel Corporation (NASDAQ:INTC)?
Insider purchases made by high-level executives is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time frame, Intel Corporation (NASDAQ:INTC) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s tactics, retail investors must always monitor hedge fund and insider trading sentiment, and Intel Corporation (NASDAQ:INTC) shareholders fit into this picture quite nicely.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.