Hedge Funds Aren’t Crazy About Lions Gate Entertainment Corp. (LGF) Anymore

Is Lions Gate Entertainment Corp. (USA) (NYSE:LGF) a splendid investment right now? Investors who are in the know are becoming less confident. The number of long hedge fund positions retreated by 3 lately. Interestingly, today, the stock is rising on unusual volume, about 50% above average. On the whole, LGF is up about 3.24% since Mr. Market’s open. So why should we pay attention to the smart money?

Lions Gate Entertainment Corp. (USA) (NYSE:LGF)

In the eyes of most traders, hedge funds are assumed to be slow, outdated financial tools of yesteryear. While there are more than 8000 funds trading today, we choose to focus on the upper echelon of this club, around 450 funds. Most estimates calculate that this group has its hands on the majority of all hedge funds’ total asset base, and by monitoring their best stock picks, we have found a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 beaten the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).

Just as important, positive insider trading activity is another way to break down the investments you’re interested in. There are lots of incentives for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).

With these “truths” under our belt, let’s take a glance at the key action encompassing Lions Gate Entertainment Corp. (USA) (NYSE:LGF).

What have hedge funds been doing with Lions Gate Entertainment Corp. (USA) (NYSE:LGF)?

Heading into 2013, a total of 15 of the hedge funds we track were long in this stock, a change of -17% from the third quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.

When looking at the hedgies we track, Alydar Capital, managed by John Murphy, holds the largest position in Lions Gate Entertainment Corp. (USA) (NYSE:LGF). Alydar Capital has a $63 million position in the stock, comprising 4.9% of its 13F portfolio. The second largest stake is held by Tremblant Capital, managed by Brett Barakett, which held a $24 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Stuart Peterson’s Artis Capital Management, Phill Gross and Robert Atchinson’s Adage Capital Management and Malcolm Fairbairn’s Ascend Capital.

Judging by the fact that Lions Gate Entertainment Corp. (USA) (NYSE:LGF) has witnessed falling interest from hedge fund managers, it’s easy to see that there is a sect of money managers who were dropping their full holdings heading into 2013. Intriguingly, Mark Rachesky’s MHR Fund Management dumped the biggest stake of the “upper crust” of funds we track, worth about $783 million in stock.. Christopher Lord’s fund, Criterion Capital, also dropped its stock, about $8 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 3 funds heading into 2013.

What have insiders been doing with Lions Gate Entertainment Corp. (USA) (NYSE:LGF)?

Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past six months. Over the latest half-year time frame, Lions Gate Entertainment Corp. (USA) (NYSE:LGF) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Lions Gate Entertainment Corp. (USA) (NYSE:LGF). These stocks are Carmike Cinemas, Inc. (NASDAQ:CKEC), RealD (NYSE:RLD), Dreamworks Animation Skg Inc (NASDAQ:DWA), Regal Entertainment Group (NYSE:RGC), and Cinemark Holdings, Inc. (NYSE:CNK). This group of stocks belong to the movie production, theaters industry and their market caps are similar to LGF’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Carmike Cinemas, Inc. (NASDAQ:CKEC) 15 2 0
RealD (NYSE:RLD) 14 0 5
Dreamworks Animation Skg Inc (NASDAQ:DWA) 7 0 4
Regal Entertainment Group (NYSE:RGC) 16 0 0
Cinemark Holdings, Inc. (NYSE:CNK) 19 0 5

With the returns shown by Insider Monkey’s tactics, everyday investors should always monitor hedge fund and insider trading sentiment, and Lions Gate Entertainment Corp. (USA) (NYSE:LGF) is an important part of this process.

Click here to learn why you should track hedge funds

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!