Is SCG Financial Acquisition Corp (NASDAQ:SCGQ) worth your attention right now? Prominent investors are taking a bullish view. The number of bullish hedge fund positions increased by 1 lately.
To most traders, hedge funds are perceived as underperforming, outdated financial tools of years past. While there are over 8000 funds with their doors open at present, we choose to focus on the leaders of this club, close to 450 funds. Most estimates calculate that this group has its hands on most of the hedge fund industry’s total capital, and by watching their highest performing equity investments, we have revealed a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).
Equally as integral, positive insider trading sentiment is another way to break down the financial markets. Just as you’d expect, there are lots of motivations for an insider to drop shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this strategy if investors know what to do (learn more here).
With these “truths” under our belt, we’re going to take a glance at the key action encompassing SCG Financial Acquisition Corp (NASDAQ:SCGQ).
Hedge fund activity in SCG Financial Acquisition Corp (NASDAQ:SCGQ)
Heading into Q2, a total of 5 of the hedge funds we track were long in this stock, a change of 25% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings meaningfully.
Of the funds we track, Brian Taylor’s Pine River Capital Management had the biggest position in SCG Financial Acquisition Corp (NASDAQ:SCGQ), worth close to $8.2 million, accounting for 0.2% of its total 13F portfolio. Coming in second is Fir Tree, managed by Jeffrey Tannenbaum, which held a $6.4 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Thomas Lenox Kempner’s Davidson Kempner, Cliff Asness’s AQR Capital Management and Sander Gerber’s Hudson Bay Capital Management.
Now, key money managers were breaking ground themselves. Davidson Kempner, managed by Thomas Lenox Kempner, established the most valuable position in SCG Financial Acquisition Corp (NASDAQ:SCGQ). Davidson Kempner had 3.9 million invested in the company at the end of the quarter.
What have insiders been doing with SCG Financial Acquisition Corp (NASDAQ:SCGQ)?
Insider purchases made by high-level executives is at its handiest when the company in question has experienced transactions within the past half-year. Over the last half-year time period, SCG Financial Acquisition Corp (NASDAQ:SCGQ) has experienced 2 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results shown by the aforementioned time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and SCG Financial Acquisition Corp (NASDAQ:SCGQ) shareholders fit into this picture quite nicely.