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Hedge Funds Are Buying Scripps Networks Interactive, Inc. (NYSE:SNI)

Scripps Networks Interactive, Inc. (NYSE:SNI) was in 28 hedge funds’ portfolio at the end of the fourth quarter of 2012. SNI investors should be aware of an increase in enthusiasm from smart money recently. There were 20 hedge funds in our database with SNI positions at the end of the previous quarter.

Scripps Networks Interactive, Inc. (NYSE:SNI)

To the average investor, there are a multitude of metrics shareholders can use to track stocks. A pair of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform the broader indices by a significant amount (see just how much).

Just as important, positive insider trading activity is another way to break down the world of equities. As the old adage goes: there are lots of reasons for an executive to cut shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this method if you understand where to look (learn more here).

Now, we’re going to take a gander at the key action encompassing Scripps Networks Interactive, Inc. (NYSE:SNI).

What have hedge funds been doing with Scripps Networks Interactive, Inc. (NYSE:SNI)?

At year’s end, a total of 28 of the hedge funds we track were bullish in this stock, a change of 40% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.

Of the funds we track, Mason Hawkins’s Southeastern Asset Management had the most valuable position in Scripps Networks Interactive, Inc. (NYSE:SNI), worth close to $142 million, accounting for 0.6% of its total 13F portfolio. Sitting at the No. 2 spot is John Paulson of Paulson & Co, with a $122 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Robert Joseph Caruso’s Select Equity Group, Tom Russo’s Gardner Russo & Gardner and Mario Gabelli’s GAMCO Investors.

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, initiated the biggest position in Scripps Networks Interactive, Inc. (NYSE:SNI). Renaissance Technologies had 25 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also initiated a $6 million position during the quarter. The other funds with brand new SNI positions are Cliff Asness’s AQR Capital Management, Glenn Russell Dubin’s Highbridge Capital Management, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

How are insiders trading Scripps Networks Interactive, Inc. (NYSE:SNI)?

Insider trading activity, especially when it’s bullish, is most useful when the company in focus has seen transactions within the past half-year. Over the latest 180-day time period, Scripps Networks Interactive, Inc. (NYSE:SNI) has seen zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned research, retail investors should always monitor hedge fund and insider trading sentiment, and Scripps Networks Interactive, Inc. (NYSE:SNI) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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.

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