Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Demand Media Inc (DMD): Hedge Fund and Insider Sentiment Unchanged, What Should You Do?

Page 1 of 2

To many investors, hedge funds are assumed to be delayed, outdated financial tools of an era lost to time. Although there are more than 8,000 hedge funds in operation today, this site focuses on the moguls of this group, around 525 funds. Analysts calculate that this group controls most of all hedge funds’ total capital, and by paying attention to their best equity investments, we’ve revealed a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).

Equally as crucial, bullish insider trading activity is a second way to look at the investments you’re interested in. There are plenty of motivations for a corporate insider to sell shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this method if you know where to look (learn more here).

What’s more, let’s study the recent info for Demand Media Inc (NYSE:DMD).

Demand Media Inc (NYSE:DMD)

What does the smart money think about Demand Media Inc (NYSE:DMD)?

At Q2’s end, a total of 13 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier.

Since Demand Media Inc (NYSE:DMD) has experienced declining interest from the smart money’s best and brightest, we can see that there lies a certain “tier” of hedgies who were dropping their full holdings in Q1. At the top of the heap, Mark N. Diker’s Diker Management sold off the largest investment of the 450+ funds we watch, comprising about $4.3 million in stock. Jay Petschek and Steven Major’s fund, Corsair Capital Management, also dropped its stock, about $0.8 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Insider trading activity in Demand Media Inc (NYSE:DMD)

Insider buying is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the latest 180-day time frame, Demand Media Inc (NYSE:DMD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Demand Media Inc (NYSE:DMD). These stocks are DealerTrack Technologies Inc (NASDAQ:TRAK), Angie’s List Inc (NASDAQ:ANGI), Digital River, Inc. (NASDAQ:DRIV), InterNAP Network Services (NASDAQ:INAP), and VirnetX Holding Corporation (NYSEAMEX:VHC). This group of stocks are the members of the internet software & services industry and their market caps are similar to DMD’s market cap.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!