Krispy Kreme Doughnuts (NYSE:KKD): Hedge Funds and Insiders Are Bearish, What Should You Do?

Krispy Kreme Doughnuts (NYSE:KKD) shareholders have witnessed a decrease in hedge fund sentiment recently.

To the average investor, there are many gauges market participants can use to analyze Mr. Market. A duo of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can outpace the market by a very impressive amount (see just how much).

Krispy Kreme Doughnuts (NYSE:KKD)Just as beneficial, optimistic insider trading sentiment is another way to parse down the marketplace. There are a variety of incentives for a corporate insider to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this strategy if you know what to do (learn more here).

Now, it’s important to take a peek at the key action surrounding Krispy Kreme Doughnuts (NYSE:KKD).

Hedge fund activity in Krispy Kreme Doughnuts (NYSE:KKD)

At the end of the fourth quarter, a total of 19 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 a few noteworthy hedge fund managers who were boosting their holdings substantially.

Of the funds we track, Chuck Royce’s Royce & Associates had the largest position in Krispy Kreme Doughnuts (NYSE:KKD), worth close to $9 million, comprising 0% of its total 13F portfolio. The second largest stake is held by Richard Driehaus of Driehaus Capital, with a $6 million position; 0% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Amy Minella’s Cardinal Capital, Ken Griffin’s Citadel Investment Group and Jim Simons’s Renaissance Technologies.

Due to the fact that Krispy Kreme Doughnuts (NYSE:KKD) has faced bearish sentiment from hedge fund managers, we can see that there was a specific group of funds that decided to sell off their full holdings last quarter. It’s worth mentioning that Richard S. Meisenberg’s ACK Asset Management dumped the biggest investment of the 450+ funds we key on, worth about $4 million in stock. J. Carlo Cannell’s fund, Cannell Capital, also said goodbye to its stock, about $3 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Krispy Kreme Doughnuts (NYSE:KKD)?

Bullish insider trading is most useful when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Krispy Kreme Doughnuts (NYSE:KKD) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

With the results shown by our time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Krispy Kreme Doughnuts (NYSE:KKD) shareholders fit into this picture quite nicely.

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

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

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!