Crown Holdings, Inc. (NYSE:CCK) investors should pay attention to a decrease in support from the world’s most elite money managers recently.
In the 21st century investor’s toolkit, there are a multitude of indicators market participants can use to track publicly traded companies. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can beat their index-focused peers by a solid margin (see just how much).
Just as key, bullish insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are a number of motivations for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this tactic if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a peek at the key action surrounding Crown Holdings, Inc. (NYSE:CCK).
What does the smart money think about Crown Holdings, Inc. (NYSE:CCK)?
In preparation for this year, a total of 26 of the hedge funds we track were long in this stock, a change of -16% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably.
According to our comprehensive database, Jeffrey Tannenbaum’s Fir Tree had the biggest position in Crown Holdings, Inc. (NYSE:CCK), worth close to $206 million, comprising 5.3% of its total 13F portfolio. The second largest stake is held by Iridian Asset Management, managed by David Cohen and Harold Levy, which held a $129 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Other hedgies that are bullish include John Shapiro’s Chieftain Capital, John Osterweis’s Osterweis Capital Management and Lou Simpson’s SQ Advisors.
Seeing as Crown Holdings, Inc. (NYSE:CCK) has faced falling interest from the aggregate hedge fund industry, it’s safe to say that there were a few fund managers that elected to cut their positions entirely at the end of the year. It’s worth mentioning that Joe DiMenna’s ZWEIG DIMENNA PARTNERS dropped the largest position of all the hedgies we track, worth about $11 million in stock., and Israel Englander of Catapult Capital Management was right behind this move, as the fund cut about $5 million worth. These transactions are important to note, as total hedge fund interest dropped by 5 funds at the end of the year.
How have insiders been trading Crown Holdings, Inc. (NYSE:CCK)?
Insider buying is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time frame, Crown Holdings, Inc. (NYSE:CCK) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey’s tactics, everyday investors must always monitor hedge fund and insider trading sentiment, and Crown Holdings, Inc. (NYSE:CCK) applies perfectly to this mantra.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.