Is IHS Inc. (IHS) Going to Burn These Hedge Funds?
Published: May 3, 2013 at 6:35 am
IHS Inc. (NYSE:IHS) has experienced a decrease in support from the world’s most elite money managers lately.
In the 21st century investor’s toolkit, there are tons of gauges market participants can use to analyze Mr. Market. Two of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the broader indices by a solid margin (see just how much).
Equally as beneficial, bullish insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are lots of stimuli for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this method if piggybackers understand where to look (learn more here).
Consequently, we’re going to take a gander at the recent action encompassing IHS Inc. (NYSE:IHS).
What does the smart money think about IHS Inc. (NYSE:IHS)?
At the end of the fourth quarter, a total of 8 of the hedge funds we track were bullish in this stock, a change of -20% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Blue Ridge Capital, managed by John Griffin, holds the most valuable position in IHS Inc. (NYSE:IHS). Blue Ridge Capital has a $161.3 million position in the stock, comprising 2.2% of its 13F portfolio. The second largest stake is held by Robert Joseph Caruso of Select Equity Group, with a $146.9 million position; 2.3% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include James Crichton and Adam Weiss’s Scout Capital Management, David Stemerman’s Conatus Capital Management and SAC Subsidiary’s Sigma Capital Management.
Seeing as IHS Inc. (NYSE:IHS) has experienced declining sentiment from the smart money, it’s easy to see that there exists a select few funds that elected to cut their positions entirely last quarter. Interestingly, Robert Pohly’s Samlyn Capital cut the largest position of all the hedgies we track, totaling about $17.5 million in stock.. Christopher Lord’s fund, Criterion Capital, also sold off its stock, about $17.4 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 2 funds last quarter.
How have insiders been trading IHS Inc. (NYSE:IHS)?
Bullish insider trading is best served when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time frame, IHS Inc. (NYSE:IHS) has seen 2 unique insiders purchasing, and 10 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to IHS Inc. (NYSE:IHS). These stocks are DST Systems, Inc. (NYSE:DST), Morningstar, Inc. (NASDAQ:MORN), Dun & Bradstreet Corp (NYSE:DNB), Nielsen Hldg NV (NYSE:NLSN), and FactSet Research Systems Inc. (NYSE:FDS). This group of stocks are in the information & delivery services industry and their market caps are closest to IHS’s market cap.