Lam Research Corporation (NASDAQ:LRCX) investors should be aware of an increase in activity from the world’s largest hedge funds of late.
In the 21st century investor’s toolkit, there are plenty of metrics investors can use to monitor the equity markets. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can beat the S&P 500 by a healthy amount (see just how much).
Just as key, optimistic insider trading sentiment is a second way to break down the world of equities. There are plenty of motivations for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).
Consequently, it’s important to take a gander at the key action encompassing Lam Research Corporation (NASDAQ:LRCX).
How are hedge funds trading Lam Research Corporation (NASDAQ:LRCX)?
In preparation for this quarter, a total of 29 of the hedge funds we track were bullish in this stock, a change of 32% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Lee Ainslie’s Maverick Capital had the largest position in Lam Research Corporation (NASDAQ:LRCX), worth close to $158.1 million, comprising 2% of its total 13F portfolio. On Maverick Capital’s heels is Eric Bannasch of Cadian Capital, with a $91.6 million position; the fund has 2.5% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Chuck Royce’s Royce & Associates, Donald Chiboucis’s Columbus Circle Investors and D. E. Shaw’s D E Shaw.
Now, specific money managers were leading the bulls’ herd. Maverick Capital, managed by Lee Ainslie, established the largest position in Lam Research Corporation (NASDAQ:LRCX). Maverick Capital had 158.1 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also made a $16.3 million investment in the stock during the quarter. The following funds were also among the new LRCX investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Daniel S. Och’s OZ Management, and Dmitry Balyasny’s Balyasny Asset Management.
How are insiders trading Lam Research Corporation (NASDAQ:LRCX)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest six-month time period, Lam Research Corporation (NASDAQ:LRCX) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Lam Research Corporation (NASDAQ:LRCX). These stocks are United Microelectronics Corp (ADR) (NYSE:UMC), KLA-Tencor Corporation (NASDAQ:KLAC), Synopsys, Inc. (NASDAQ:SNPS), Advanced Semiconductor Engineering (ADR) (NYSE:ASX), and Cree, Inc. (NASDAQ:CREE). All of these stocks are in the semiconductor equipment & materials industry and their market caps resemble LRCX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|United Microelectronics Corp (ADR) (NYSE:UMC)||13||0||0|
|KLA-Tencor Corporation (NASDAQ:KLAC)||30||0||8|
|Synopsys, Inc. (NASDAQ:SNPS)||20||0||11|
|Advanced Semiconductor Engineering (ADR) (NYSE:ASX)||7||0||0|
|Cree, Inc. (NASDAQ:CREE)||22||1||4|
With the results exhibited by the aforementioned strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Lam Research Corporation (NASDAQ:LRCX) applies perfectly to this mantra.