Is Nokia Corporation (ADR) (NYSE:NOK) the right pick for your portfolio? The smart money is taking a bearish view. The number of bullish hedge fund bets retreated by 3 recently.
To the average investor, there are plenty of methods investors can use to watch stocks. A couple of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outpace the broader indices by a solid amount (see just how much).
Equally as integral, optimistic insider trading sentiment is another way to break down the world of equities. Just as you’d expect, there are a variety of incentives for a corporate insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).
With all of this in mind, we’re going to take a glance at the key action encompassing Nokia Corporation (ADR) (NYSE:NOK).
What does the smart money think about Nokia Corporation (ADR) (NYSE:NOK)?
In preparation for this year, a total of 12 of the hedge funds we track were long in this stock, a change of -20% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings meaningfully.
Of the funds we track, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the biggest position in Nokia Corporation (ADR) (NYSE:NOK). Arrowstreet Capital has a $48 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Francis Chou of Chou Associates Management, with a $20 million position; the fund has 5.2% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Philippe Laffont’s Coatue Management, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.
Because Nokia Corporation (ADR) (NYSE:NOK) has experienced declining sentiment from the smart money, it’s safe to say that there was a specific group of hedgies who sold off their entire stakes last quarter. Interestingly, Guru Ramakrishnan’s Meru Capital dumped the largest position of the “upper crust” of funds we track, worth an estimated $2 million in stock.. Himanshu H. Shah’s fund, Shah Capital Management, also dropped its stock, about $1 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 3 funds last quarter.
Insider trading activity in Nokia Corporation (ADR) (NYSE:NOK)
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time period, Nokia Corporation (ADR) (NYSE:NOK) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey’s time-tested strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Nokia Corporation (ADR) (NYSE:NOK) shareholders fit into this picture quite nicely.
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