Monster Worldwide, Inc. (NYSE:MWW) was in 17 hedge funds’ portfolio at the end of the fourth quarter of 2012. MWW shareholders have witnessed a decrease in support from the world’s most elite money managers recently. There were 19 hedge funds in our database with MWW positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are tons of indicators shareholders can use to track publicly traded companies. 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 best picks of the top fund managers can beat the market by a very impressive margin (see just how much).
Equally as important, positive insider trading activity is another way to break down the financial markets. Just as you’d expect, there are many incentives for an upper level exec to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this tactic if piggybackers know what to do (learn more here).
With these “truths” under our belt, we’re going to take a gander at the recent action regarding Monster Worldwide, Inc. (NYSE:MWW).
How are hedge funds trading Monster Worldwide, Inc. (NYSE:MWW)?
In preparation for this year, a total of 17 of the hedge funds we track were long in this stock, a change of -11% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.
Of the funds we track, Pzena Investment Management, managed by Richard S. Pzena, holds the largest position in Monster Worldwide, Inc. (NYSE:MWW). Pzena Investment Management has a $15 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by George Soros of Soros Fund Management, with a $11 million position; 0% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Chuck Royce’s Royce & Associates, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.
Judging by the fact that Monster Worldwide, Inc. (NYSE:MWW) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds who were dropping their full holdings last quarter. At the top of the heap, Jonathon Jacobson’s Highfields Capital Management sold off the largest investment of all the hedgies we watch, worth close to $15 million in stock.. Alec Litowitz and Ross Laser’s fund, Magnetar Capital, also cut its call options., about $12 million worth. These transactions are important to note, as total hedge fund interest fell by 2 funds last quarter.
How are insiders trading Monster Worldwide, Inc. (NYSE:MWW)?
Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time period, Monster Worldwide, Inc. (NYSE:MWW) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey’s tactics, everyday investors must always keep an eye on hedge fund and insider trading activity, and Monster Worldwide, Inc. (NYSE:MWW) is an important part of this process.
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.