Hedge Funds Are Selling FactSet Research Systems Inc. (FDS)

Is FactSet Research Systems Inc. (NYSE:FDS) a bargain? The best stock pickers are getting less bullish. The number of bullish hedge fund bets decreased by 1 lately.

FactSet Research Systems Inc. (NYSE:FDS)

To most investors, hedge funds are seen as worthless, outdated financial vehicles of the past. While there are more than 8000 funds in operation at present, we choose to focus on the moguls of this group, close to 450 funds. It is estimated that this group controls the lion’s share of all hedge funds’ total asset base, and by watching their best picks, we have formulated a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outstripped 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 24 percentage points in 7 months (explore the details and some picks here).

Just as important, bullish insider trading activity is another way to parse down the financial markets. Just as you’d expect, there are lots of incentives for a corporate insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this method if “monkeys” know where to look (learn more here).

With all of this in mind, let’s take a gander at the key action encompassing FactSet Research Systems Inc. (NYSE:FDS).

How have hedgies been trading FactSet Research Systems Inc. (NYSE:FDS)?

At the end of the fourth quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of -9% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings meaningfully.

When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in FactSet Research Systems Inc. (NYSE:FDS). Renaissance Technologies has a $72.9 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is David Blood and Al Gore of Generation Investment Management, with a $63 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Ken Griffin’s Citadel Investment Group, Charles Akre’s Akre Capital Management and Chuck Royce’s Royce & Associates.

Seeing as FactSet Research Systems Inc. (NYSE:FDS) has witnessed a declination in interest from hedge fund managers, it’s safe to say that there were a few money managers that elected to cut their entire stakes heading into 2013. Interestingly, Israel Englander’s Millennium Management sold off the largest position of the “upper crust” of funds we track, comprising close to $5.3 million in stock., and Paul Tudor Jones of Tudor Investment Corp was right behind this move, as the fund dumped about $0.2 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 1 funds heading into 2013.

How have insiders been trading FactSet Research Systems Inc. (NYSE:FDS)?

Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, FactSet Research Systems Inc. (NYSE:FDS) has experienced zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to FactSet Research Systems Inc. (NYSE:FDS). These stocks are IHS Inc. (NYSE:IHS), Broadridge Financial Solutions, Inc. (NYSE:BR), DST Systems, Inc. (NYSE:DST), Morningstar, Inc. (NASDAQ:MORN), and Dun & Bradstreet Corp (NYSE:DNB). All of these stocks are in the information & delivery services industry and their market caps resemble FDS’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
IHS Inc. (NYSE:IHS) 8 2 10
Broadridge Financial Solutions, Inc. (NYSE:BR) 17 0 5
DST Systems, Inc. (NYSE:DST) 20 1 7
Morningstar, Inc. (NASDAQ:MORN) 8 0 10
Dun & Bradstreet Corp (NYSE:DNB) 12 0 5

With the returns demonstrated by our time-tested strategies, retail investors must always monitor hedge fund and insider trading activity, and FactSet Research Systems Inc. (NYSE:FDS) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!