SYNNEX Corporation (NYSE:SNX) was in 6 hedge funds’ portfolio at the end of March. SNX has experienced a decrease in hedge fund interest recently. There were 8 hedge funds in our database with SNX positions at the end of the previous quarter.
If you’d ask most shareholders, hedge funds are viewed as underperforming, old financial vehicles of the past. While there are over 8000 funds trading at the moment, we at Insider Monkey choose to focus on the aristocrats of this club, about 450 funds. It is widely believed that this group oversees the majority of the hedge fund industry’s total asset base, and by paying attention to their top equity investments, we have determined a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Just as beneficial, bullish insider trading sentiment is another way to break down the world of equities. Obviously, there are lots of stimuli for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).
Keeping this in mind, let’s take a look at the key action regarding SYNNEX Corporation (NYSE:SNX).
How are hedge funds trading SYNNEX Corporation (NYSE:SNX)?
Heading into Q2, a total of 6 of the hedge funds we track were bullish in this stock, a change of -25% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings substantially.
According to our comprehensive database, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in SYNNEX Corporation (NYSE:SNX). Citadel Investment Group has a $6.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Gotham Asset Management, managed by Joel Greenblatt, which held a $6.7 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Jim Simons’s Renaissance Technologies, Neil Chriss’s Hutchin Hill Capital and Cliff Asness’s AQR Capital Management.
Seeing as SYNNEX Corporation (NYSE:SNX) has experienced bearish sentiment from the smart money, logic holds that there lies a certain “tier” of money managers that decided to sell off their full holdings heading into Q2. Intriguingly, John Overdeck and David Siegel’s Two Sigma Advisors dropped the largest investment of all the hedgies we monitor, totaling an estimated $0.8 million in stock.. Israel Englander’s fund, Millennium Management, also sold off its stock, about $0.3 million worth. These transactions are interesting, as total hedge fund interest fell by 2 funds heading into Q2.
Insider trading activity in SYNNEX Corporation (NYSE:SNX)
Insider trading activity, especially when it’s bullish, is best served when the company in question has seen transactions within the past 180 days. Over the last 180-day time frame, SYNNEX Corporation (NYSE:SNX) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to SYNNEX Corporation (NYSE:SNX). These stocks are Cardtronics, Inc. (NASDAQ:CATM), Interval Leisure Group, Inc. (NASDAQ:IILG), Shutterstock Inc (NYSE:SSTK), VistaPrint Limited (NASDAQ:VPRT), and Euronet Worldwide, Inc. (NASDAQ:EEFT). All of these stocks are in the business services industry and their market caps are closest to SNX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cardtronics, Inc. (NASDAQ:CATM) | 14 | 1 | 5 |
| Interval Leisure Group, Inc. (NASDAQ:IILG) | 11 | 0 | 0 |
| Shutterstock Inc (NYSE:SSTK) | 6 | 0 | 0 |
| VistaPrint Limited (NASDAQ:VPRT) | 12 | 3 | 4 |
| Euronet Worldwide, Inc. (NASDAQ:EEFT) | 15 | 0 | 5 |
With the returns demonstrated by Insider Monkey’s studies, everyday investors should always watch hedge fund and insider trading activity, and SYNNEX Corporation (NYSE:SNX) applies perfectly to this mantra.
