At the moment, there are tons of methods investors can use to track 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 top picks of the elite hedge fund managers can beat the market by a superb margin (see just how much).
Equally as crucial, positive insider trading activity is another way to look at the stock market universe. Obviously, there are lots of motivations for an upper level exec to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).
Furthermore, it’s important to examine the latest info surrounding J2 Global Inc (NASDAQ:JCOM).
What have hedge funds been doing with J2 Global Inc (NASDAQ:JCOM)?
At the end of the second quarter, a total of 15 of the hedge funds we track held long positions in this stock, a change of 25% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings considerably.
According to our 13F database, Amy Minella’s Cardinal Capital had the biggest position in J2 Global Inc (NASDAQ:JCOM), worth close to $59.2 million, comprising 3.8% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $23.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Joel Greenblatt’s Gotham Asset Management, Ken Griffin’s Citadel Investment Group and Ken Fisher’s Fisher Asset Management.
As aggregate interest spiked, certain money managers have jumped into J2 Global Inc (NASDAQ:JCOM) headfirst. Cardinal Capital, managed by Amy Minella, assembled the biggest position in J2 Global Inc (NASDAQ:JCOM). Cardinal Capital had 59.2 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $23.4 million position during the quarter. The other funds with new positions in the stock are Joel Greenblatt’s Gotham Asset Management, Ken Griffin’s Citadel Investment Group, and Ken Fisher’s Fisher Asset Management.
How have insiders been trading J2 Global Inc (NASDAQ:JCOM)?
Bullish insider trading is most useful when the company in focus has seen transactions within the past half-year. Over the last half-year time frame, J2 Global Inc (NASDAQ:JCOM) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to J2 Global Inc (NASDAQ:JCOM). These stocks are The Ultimate Software Group, Inc. (NASDAQ:ULTI), Angie’s List Inc (NASDAQ:ANGI), DealerTrack Technologies Inc (NASDAQ:TRAK), Net Element Inc (PINK:NETE), and ExactTarget Inc (NYSE:ET). This group of stocks belong to the internet software & services industry and their market caps are closest to JCOM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| The Ultimate Software Group, Inc. (NASDAQ:ULTI) | 11 | 0 | 0 |
| Angie’s List Inc (NASDAQ:ANGI) | 15 | 0 | 0 |
| DealerTrack Technologies Inc (NASDAQ:TRAK) | 4 | 0 | 0 |
| Net Element Inc (PINK:NETE) | 0 | 0 | |
| ExactTarget Inc (NYSE:ET) | 30 | 0 | 0 |
Using the results explained by our analyses, average investors must always keep one eye on hedge fund and insider trading sentiment, and J2 Global Inc (NASDAQ:JCOM) shareholders fit into this picture quite nicely.
