Is National Financial Partners Corp. (NYSE:NFP) a good investment now? Prominent investors are in a bullish mood. The number of bullish hedge fund positions improved by 3 in recent months.
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Equally as beneficial, positive insider trading sentiment is another way to break down the investments you’re interested in. Just as you’d expect, there are lots of motivations for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the valuable potential of this strategy if “monkeys” know where to look (learn more here).
Now, we’re going to take a glance at the key action encompassing National Financial Partners Corp. (NYSE:NFP).
What have hedge funds been doing with National Financial Partners Corp. (NYSE:NFP)?
At the end of the fourth quarter, a total of 15 of the hedge funds we track were long in this stock, a change of 25% from the third quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings substantially.
When looking at the hedgies we track, Harvest Capital Strategies, managed by Joseph A. Jolson, holds the biggest position in National Financial Partners Corp. (NYSE:NFP). Harvest Capital Strategies has a $22 million position in the stock, comprising 4% of its 13F portfolio. Coming in second is Ken Griffin of Citadel Investment Group, with a $18 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Brian Taylor’s Pine River Capital Management, Jim Simons’s Renaissance Technologies and Gregg J. Powers’s Private Capital Management.
Consequently, key hedge funds have been driving this bullishness. Pine River Capital Management, managed by Brian Taylor, created the biggest position in National Financial Partners Corp. (NYSE:NFP). Pine River Capital Management had 11 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $2 million investment in the stock during the quarter. The other funds with brand new NFP positions are Phil Frohlich’s Prescott Group Capital Management and Cliff Asness’s AQR Capital Management.
How have insiders been trading National Financial Partners Corp. (NYSE:NFP)?
Insider buying is best served when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time period, National Financial Partners Corp. (NYSE:NFP) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to National Financial Partners Corp. (NYSE:NFP). These stocks are Erie Indemnity Company (NASDAQ:ERIE), CNinsure Inc. (ADR) (NASDAQ:CISG), eHealth, Inc. (NASDAQ:EHTH), and CorVel Corporation (NASDAQ:CRVL). This group of stocks belong to the insurance brokers industry and their market caps are similar to NFP’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Erie Indemnity Company (NASDAQ:ERIE)||9||1||2|
|CNinsure Inc. (ADR) (NASDAQ:CISG)||5||0||0|
|eHealth, Inc. (NASDAQ:EHTH)||10||0||4|
|CorVel Corporation (NASDAQ:CRVL)||5||0||4|
With the results exhibited by Insider Monkey’s strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and National Financial Partners Corp. (NYSE:NFP) is no exception.
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