Here is What Hedge Funds Think About Farmer Brothers Co. (FARM)

Farmer Brothers Co. (NASDAQ:FARM) was in 8 hedge funds’ portfolio at the end of March. FARM has seen a decrease in support from the world’s most elite money managers of late. There were 8 hedge funds in our database with FARM holdings at the end of the previous quarter.

If you’d ask most shareholders, hedge funds are seen as slow, old investment tools of the past. While there are greater than 8000 funds trading today, we at Insider Monkey look at the top tier of this club, about 450 funds. It is estimated that this group controls the lion’s share of the hedge fund industry’s total capital, and by paying attention to their highest performing investments, we have come up with a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year 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 23.3 percentage points in 8 months (explore the details and some picks here).

Just as beneficial, positive insider trading activity is a second way to break down the marketplace. There are lots of incentives for an executive to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this method if piggybackers know where to look (learn more here).

With these “truths” under our belt, let’s take a glance at the recent action encompassing Farmer Brothers Co. (NASDAQ:FARM).

Hedge fund activity in Farmer Brothers Co. (NASDAQ:FARM)

Heading into Q2, a total of 8 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 an “upper tier” of key hedge fund managers who were boosting their stakes meaningfully.

Farmer Brothers Co. (NASDAQ:FARM)When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the largest position in Farmer Brothers Co. (NASDAQ:FARM), worth close to $8.7 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Michael Price of MFP Investors, with a $5.4 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Mark Broach’s Manatuck Hill Partners and Israel Englander’s Millennium Management.

Because Farmer Brothers Co. (NASDAQ:FARM) has experienced falling interest from hedge fund managers, we can see that there lies a certain “tier” of fund managers who were dropping their entire stakes last quarter. Intriguingly, Joseph A. Jolson’s Harvest Capital Strategies said goodbye to the largest stake of all the hedgies we watch, comprising an estimated $1.4 million in stock. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Farmer Brothers Co. (NASDAQ:FARM)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, Farmer Brothers Co. (NASDAQ:FARM) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Farmer Brothers Co. (NASDAQ:FARM) shareholders fit into this picture quite nicely.

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!