Investment Technology Group (ITG): Smart Money’s Mixed on Knight Capital Group Inc. (KCG), What’s The Right Play?

Is Knight Capital Group Inc. (NYSE:KCG) the right pick for your portfolio? Prominent investors are becoming more confident. The number of long hedge fund positions advanced by 4 recently, and sentiment was also swirling in key peer Investment Technology Group (NYSE:ITG).

Knight Capital (KCG)To the average investor, there are a multitude of methods market participants can use to track stocks. Some of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can outperform the S&P 500 by a significant margin (see just how much).

Equally as beneficial, positive insider trading sentiment is another way to break down the investments you’re interested in. Just as you’d expect, there are lots of incentives for an insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this method if “monkeys” understand where to look (learn more here).

With these “truths” under our belt, let’s take a glance at the latest action surrounding Knight Capital Group Inc. (NYSE:KCG).

How have hedgies been trading Knight Capital Group Inc. (NYSE:KCG)?

Heading into 2013, a total of 13 of the hedge funds we track were long in this stock, a change of 44% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings substantially.

According to our comprehensive database, Robert Emil Zoellner’s Alpine Associates had the most valuable position in Knight Capital Group Inc. (NYSE:KCG), worth close to $12 million, accounting for 0.5% of its total 13F portfolio. On Alpine Associates’s heels is Ascend Capital, managed by Malcolm Fairbairn, which held a $7 million position; 0.5% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Philippe Jabre’s Jabre Capital Partners, John Arnold’s Centaurus Advisors and Matthew Halbower’s Pentwater Capital Management.

As aggregate interest increased, specific money managers have jumped into Knight Capital Group Inc. (NYSE:KCG) headfirst. Alpine Associates, managed by Robert Emil Zoellner, established the most outsized position in Knight Capital Group Inc. (NYSE:KCG). Alpine Associates had 12 million invested in the company at the end of the quarter. Malcolm Fairbairn’s Ascend Capital also initiated a $7 million position during the quarter. The following funds were also among the new KCG investors: Philippe Jabre’s Jabre Capital Partners, John Arnold’s Centaurus Advisors, and Matthew Halbower’s Pentwater Capital Management.

How are insiders trading Knight Capital Group Inc. (NYSE:KCG)?

Insider purchases made by high-level executives is most useful when the company in question has seen transactions within the past half-year. Over the latest 180-day time frame, Knight Capital Group Inc. (NYSE:KCG) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here). Let’s take a look at Investment Technology Group (NYSE:ITG).

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Investment Technology Group (NYSE:ITG) 11 0 2

With the results exhibited by Insider Monkey’s strategies, everyday investors must always keep an eye on hedge fund and insider trading activity, and Knight Capital Group Inc. (NYSE:KCG) is an important part of this process.

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

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

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

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

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

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!