Silvercorp Metals Inc. (USA) (SVM): Insiders Aren’t Crazy About It

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Silvercorp Metals Inc. (USA) (NYSE:SVM) was in 8 hedge funds’ portfolio at the end of the first quarter of 2013. SVM has seen an increase in enthusiasm from smart money in recent months. There were 7 hedge funds in our database with SVM positions at the end of the previous quarter.

At the moment, there are a multitude of indicators shareholders can use to monitor Mr. Market. A pair of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can outclass their index-focused peers by a healthy amount (see just how much).

Silvercorp Metals Inc. (USA) (NYSE:SVM)

Equally as key, bullish insider trading sentiment is a second way to parse down the marketplace. Obviously, there are a number of stimuli for a corporate insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this method if shareholders understand what to do (learn more here).

Keeping this in mind, we’re going to take a gander at the latest action surrounding Silvercorp Metals Inc. (USA) (NYSE:SVM).

What have hedge funds been doing with Silvercorp Metals Inc. (USA) (NYSE:SVM)?

At Q1’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 14% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.

Of the funds we track, Jim Simons’s Renaissance Technologies had the biggest position in Silvercorp Metals Inc. (USA) (NYSE:SVM), worth close to $19.9 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $17.6 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.

Now, specific money managers have jumped into Silvercorp Metals Inc. (USA) (NYSE:SVM) headfirst. Highbridge Capital Management, managed by Glenn Russell Dubin, created the most valuable position in Silvercorp Metals Inc. (USA) (NYSE:SVM). Highbridge Capital Management had 0 million invested in the company at the end of the quarter.

How have insiders been trading Silvercorp Metals Inc. (USA) (NYSE:SVM)?

Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the latest 180-day time period, Silvercorp Metals Inc. (USA) (NYSE:SVM) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Silvercorp Metals Inc. (USA) (NYSE:SVM). These stocks are First Majestic Silver Corp (NYSE:AG), Hecla Mining Company (NYSE:HL), Silver Standard Resources Inc. (USA) (NASDAQ:SSRI), Mag Silver Corp (USA) (NYSEAMEX:MVG), and Endeavour Silver Corp. (CAN) (NYSE:EXK). All of these stocks are in the silver industry and their market caps are similar to SVM’s market cap.

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