Is Amkor Technology, Inc. (AMKR) Going to Burn These Hedge Funds?

Amkor Technology, Inc. (NASDAQ:AMKR) was in 16 hedge funds’ portfolio at the end of March. AMKR shareholders have witnessed an increase in support from the world’s most elite money managers lately. There were 12 hedge funds in our database with AMKR positions at the end of the previous quarter.

In today’s marketplace, there are a multitude of indicators market participants can use to monitor Mr. Market. Some of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite investment managers can beat their index-focused peers by a solid amount (see just how much).

Just as key, optimistic insider trading sentiment is another way to parse down the world of equities. Obviously, there are lots of incentives for an executive to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this strategy if shareholders know where to look (learn more here).

Keeping this in mind, we’re going to take a peek at the recent action surrounding Amkor Technology, Inc. (NASDAQ:AMKR).

What does the smart money think about Amkor Technology, Inc. (NASDAQ:AMKR)?

Heading into Q2, a total of 16 of the hedge funds we track were bullish in this stock, a change of 33% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their stakes significantly.

Amkor Technology, Inc. (NASDAQ:AMKR)According to our comprehensive database, Eric Bannasch’s Cadian Capital had the biggest position in Amkor Technology, Inc. (NASDAQ:AMKR), worth close to $9.7 million, accounting for 0.3% of its total 13F portfolio. The second largest stake is held by Joshua Friedman and Mitchell Julis of Canyon Capital Advisors, with a $7.3 million position; 1.2% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Boaz Weinstein’s Saba Capital, David Dreman’s Dreman Value Management and Brian Kelly’s Asian Century Quest.

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Saba Capital, managed by Boaz Weinstein, established the most valuable position in Amkor Technology, Inc. (NASDAQ:AMKR). Saba Capital had 6.2 million invested in the company at the end of the quarter. Brian Kelly’s Asian Century Quest also made a $4.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Daniel S. Och’s OZ Management, Dmitry Balyasny’s Balyasny Asset Management, and Paul Tudor Jones’s Tudor Investment Corp.

Insider trading activity in Amkor Technology, Inc. (NASDAQ:AMKR)

Insider buying is best served when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time frame, Amkor Technology, Inc. (NASDAQ:AMKR) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Amkor Technology, Inc. (NASDAQ:AMKR). These stocks are Applied Micro Circuits Corporation (NASDAQ:AMCC), OmniVision Technologies, Inc. (NASDAQ:OVTI), EZchip Semiconductor Ltd. (NASDAQ:EZCH), Aeroflex Holding Corp. (NYSE:ARX), and Micrel, Incorporated (NASDAQ:MCRL). This group of stocks are in the semiconductor – integrated circuits industry and their market caps are similar to AMKR’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Applied Micro Circuits Corporation (NASDAQ:AMCC) 14 1 3
OmniVision Technologies, Inc. (NASDAQ:OVTI) 18 0 2
EZchip Semiconductor Ltd. (NASDAQ:EZCH) 5 0 0
Aeroflex Holding Corp. (NYSE:ARX) 10 2 0
Micrel, Incorporated (NASDAQ:MCRL) 6 1 0

With the returns demonstrated by Insider Monkey’s strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Amkor Technology, Inc. (NASDAQ:AMKR) is an important part of this process.

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