Now, according to many investors, hedge funds are perceived as delayed, old financial tools of a period lost to current times. Although there are more than 8,000 hedge funds trading currently, Insider Monkey aim at the elite of this club, close to 525 funds. It is widely held that this group oversees the lion’s share of the hedge fund industry’s total assets, and by keeping an eye on their highest quality investments, we’ve spotted a number of investment strategies that have historically beaten the S&P 500. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as crucial, bullish insider trading sentiment is another way to analyze the stock market universe. Just as you’d expect, there are a number of motivations for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this tactic if you know what to do (learn more here).
Now that that’s out of the way, let’s analyze the latest info surrounding Lumos Networks Corp (NASDAQ:LMOS).
Hedge fund activity in Lumos Networks Corp (NASDAQ:LMOS)
In preparation for the third quarter, a total of 9 of the hedge funds we track were bullish in this stock, a change of 125% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings significantly.
When using filings from the hedgies we track, Archer Capital Management, managed by Eric Edidin and Josh Lobel, holds the largest position in Lumos Networks Corp (NASDAQ:LMOS). Archer Capital Management has a $38.5 million position in the stock, comprising 7.1% of its 13F portfolio. Sitting at the No. 2 spot is Spencer M. Waxman of Shannon River Fund Management, with a $18 million position; 2.1% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Jacob Gottlieb’s Visium Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors and Jim Simons’s Renaissance Technologies.
As aggregate interest spiked, certain money managers were leading the bulls’ herd. Archer Capital Management, managed by Eric Edidin and Josh Lobel, created the most valuable position in Lumos Networks Corp (NASDAQ:LMOS). Archer Capital Management had 38.5 million invested in the company at the end of the quarter. Spencer M. Waxman’s Shannon River Fund Management also made a $18 million investment in the stock during the quarter. The following funds were also among the new LMOS investors: Jacob Gottlieb’s Visium Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Jim Simons’s Renaissance Technologies.
Insider trading activity in Lumos Networks Corp (NASDAQ:LMOS)
Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time frame, Lumos Networks Corp (NASDAQ:LMOS) 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 Lumos Networks Corp (NASDAQ:LMOS). These stocks are Cbeyond, Inc. (NASDAQ:CBEY), RigNet Inc (NASDAQ:RNET), Hawaiian Telcom HoldCo Inc (NASDAQ:HCOM), ORBCOMM Inc (NASDAQ:ORBC), and IDT Corporation (NYSE:IDT). All of these stocks are in the diversified communication services industry and their market caps are similar to LMOS’s market cap.