Is SINA Corp (NASDAQ:SINA) a healthy stock for your portfolio? Hedge funds are buying. The number of bullish hedge fund positions improved by 3 in recent months.
At the moment, there are plenty of indicators investors can use to watch stocks. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform the broader indices by a solid margin (see just how much).
Just as important, positive insider trading sentiment is a second way to parse down the stock market universe. Just as you’d expect, there are a number of reasons for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if investors understand what to do (learn more here).
Keeping this in mind, it’s important to take a gander at the key action surrounding SINA Corp (NASDAQ:SINA).
What does the smart money think about SINA Corp (NASDAQ:SINA)?
In preparation for this quarter, a total of 26 of the hedge funds we track were long in this stock, a change of 13% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Platinum Asset Management, managed by Kerr Neilson, holds the largest position in SINA Corp (NASDAQ:SINA). Platinum Asset Management has a $244.9 million position in the stock, comprising 5.3% of its 13F portfolio. The second largest stake is held by Robert Karr of Joho Capital, with a $39.3 million position; 4.4% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Brian Kelly’s Asian Century Quest, and Sanford J. Colen’s Apex Capital.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Fortress Investment Group, managed by Michael Novogratz, established the most outsized call position in SINA Corp (NASDAQ:SINA). Fortress Investment Group had 15.9 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also made a $13.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Louis Bacon’s Moore Global Investments, Michael Novogratz’s Fortress Investment Group, and Philippe Jabre’s Jabre Capital Partners.
What do corporate executives and insiders think about SINA Corp (NASDAQ:SINA)?
Insider purchases made by high-level executives is best served when the company in question has experienced transactions within the past half-year. Over the latest six-month time period, SINA Corp (NASDAQ:SINA) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to SINA Corp (NASDAQ:SINA). These stocks are NetEase, Inc (ADR) (NASDAQ:NTES), ExactTarget Inc (NYSE:ET), J2 Global Inc (NASDAQ:JCOM), Net Element Inc (PINK:NETE), and The Ultimate Software Group, Inc. (NASDAQ:ULTI). This group of stocks are in the internet software & services industry and their market caps match SINA’s market cap.