DFC Global Corp (NASDAQ:DLLR) investors should be aware of a decrease in enthusiasm from smart money lately.
In the 21st century investor’s toolkit, there are many metrics shareholders can use to analyze their holdings. Two of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outclass the market by a superb amount (see just how much).
Just as important, positive insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are a variety of incentives for an executive to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this strategy if piggybackers understand where to look (learn more here).
Consequently, let’s take a look at the latest action encompassing DFC Global Corp (NASDAQ:DLLR).
What does the smart money think about DFC Global Corp (NASDAQ:DLLR)?
In preparation for this year, a total of 8 of the hedge funds we track were long in this stock, a change of -11% from the third quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their stakes meaningfully.
When looking at the hedgies we track, Alydar Capital, managed by John Murphy, holds the most valuable position in DFC Global Corp (NASDAQ:DLLR). Alydar Capital has a $61 million position in the stock, comprising 4.7% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $9 million position; the fund has 0% of its 13F portfolio invested in the stock. Other peers that are bullish include Jim Simons’s Renaissance Technologies, Andy Redleaf’s Whitebox Advisors and D. E. Shaw’s D E Shaw.
Due to the fact that DFC Global Corp (NASDAQ:DLLR) has experienced a declination in interest from the aggregate hedge fund industry, we can see that there were a few money managers who were dropping their entire stakes in Q4. Intriguingly, Phill Gross and Robert Atchinson’s Adage Capital Management sold off the biggest stake of all the hedgies we watch, worth close to $4 million in stock.. Steven Owsley’s fund, Madison Street Partners, also dropped its stock, about $1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 1 funds in Q4.
How are insiders trading DFC Global Corp (NASDAQ:DLLR)?
Insider purchases made by high-level executives is particularly usable when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time period, DFC Global Corp (NASDAQ:DLLR) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to DFC Global Corp (NASDAQ:DLLR). These stocks are PHH Corporation (NYSE:PHH), World Acceptance Corp. (NASDAQ:WRLD), Global Cash Access Holdings, Inc. (NYSE:GCA), Fifth Street Finance Corp. (NASDAQ:FSC), and NewStar Financial Inc (NASDAQ:NEWS). This group of stocks are in the credit services industry and their market caps are closest to DLLR’s market cap.