Is Diana Containerships Inc (NASDAQ:DCIX) the right investment to pursue these days? The smart money is getting less optimistic. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience
To most market participants, hedge funds are viewed as worthless, outdated investment tools of the past. While there are over 8000 funds with their doors open at the moment, we look at the moguls of this group, around 450 funds. It is estimated that this group controls most of the hedge fund industry’s total capital, and by tracking their best picks, we have figured out a number of investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).
Equally as key, optimistic insider trading activity is another way to break down the investments you’re interested in. Just as you’d expect, there are a variety of motivations for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this tactic if shareholders understand where to look (learn more here).
With all of this in mind, let’s take a peek at the latest action regarding Diana Containerships Inc (NASDAQ:DCIX).
Hedge fund activity in Diana Containerships Inc (NASDAQ:DCIX)
At Q1’s end, a total of 7 of the hedge funds we track held long positions in this stock, a change of 0% from the first quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings significantly.
Of the funds we track, Gruss Asset Management, managed by Howard Guberman, holds the biggest position in Diana Containerships Inc (NASDAQ:DCIX). Gruss Asset Management has a $4.5 million position in the stock, comprising 0.7% of its 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $2.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Jim Simons’s Renaissance Technologies, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Israel Englander’s Millennium Management.
Judging by the fact that Diana Containerships Inc (NASDAQ:DCIX) has faced a declination in interest from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of hedgies who were dropping their entire stakes in Q1. It’s worth mentioning that John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the largest investment of the “upper crust” of funds we watch, worth about $0.2 million in stock.. Ken Griffin’s fund, Citadel Investment Group, also cut its stock, about $0.1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Diana Containerships Inc (NASDAQ:DCIX)?
Insider purchases made by high-level executives is at its handiest when the company in question has experienced transactions within the past 180 days. Over the last half-year time period, Diana Containerships Inc (NASDAQ:DCIX) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey’s time-tested strategies, retail investors must always monitor hedge fund and insider trading sentiment, and Diana Containerships Inc (NASDAQ:DCIX) shareholders fit into this picture quite nicely.