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Hedge Funds Are Selling Everest Re Group Ltd (NYSE:RE)

Everest Re Group Ltd (NYSE:RE) was in 18 hedge funds’ portfolio at the end of December. RE has experienced a decrease in support from the world’s most elite money managers in recent months. There were 18 hedge funds in our database with RE positions at the end of the previous quarter.

Everest Re Group Ltd (NYSE:RE)

To most traders, hedge funds are perceived as unimportant, outdated investment vehicles of yesteryear. While there are greater than 8000 funds with their doors open today, we hone in on the upper echelon of this club, close to 450 funds. It is estimated that this group controls the lion’s share of the hedge fund industry’s total capital, and by monitoring their best equity investments, we have formulated a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually 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 outclassed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Just as key, positive insider trading sentiment is another way to break down the marketplace. Just as you’d expect, there are a variety of incentives for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this method if investors understand where to look (learn more here).

Keeping this in mind, we’re going to take a peek at the latest action regarding Everest Re Group Ltd (NYSE:RE).

Hedge fund activity in Everest Re Group Ltd (NYSE:RE)

In preparation for this year, a total of 18 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully.

According to our comprehensive database, Southeastern Asset Management, managed by Mason Hawkins, holds the largest position in Everest Re Group Ltd (NYSE:RE). Southeastern Asset Management has a $508 million position in the stock, comprising 2.2% of its 13F portfolio. On Southeastern Asset Management’s heels is Ken Griffin of Citadel Investment Group, with a $61 million position; 0% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include Richard Schimel’s Diamondback Capital, Ken Gray and Steve Walsh’s Bryn Mawr Capital and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Since Everest Re Group Ltd (NYSE:RE) has faced declining sentiment from hedge fund managers, we can see that there was a specific group of funds who sold off their full holdings at the end of the year. Intriguingly, Cliff Asness’s AQR Capital Management cut the biggest position of all the hedgies we monitor, totaling close to $54 million in stock.. Anil Stevens and Glenn Shapiro’s fund, Parameter Capital Management, also dumped its call options., about $6 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Everest Re Group Ltd (NYSE:RE)?

Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest six-month time frame, Everest Re Group Ltd (NYSE:RE) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

With the returns demonstrated by our research, everyday investors must always monitor hedge fund and insider trading sentiment, and Everest Re Group Ltd (NYSE:RE) applies perfectly to this mantra.

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

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