Lender Processing Services, Inc. (NYSE:LPS) investors should be aware of a decrease in activity from the world’s largest hedge funds in recent months.
To the average investor, there are many methods investors can use to analyze publicly traded companies. A couple of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform their index-focused peers by a superb amount (see just how much).
Just as beneficial, bullish insider trading activity is another way to break down the investments you’re interested in. As the old adage goes: there are plenty of incentives for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).
Now, let’s take a peek at the latest action surrounding Lender Processing Services, Inc. (NYSE:LPS).
Hedge fund activity in Lender Processing Services, Inc. (NYSE:LPS)
In preparation for this year, a total of 17 of the hedge funds we track were long in this stock, a change of -15% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes considerably.
According to our comprehensive database, AQR Capital Management, managed by Cliff Asness, holds the largest position in Lender Processing Services, Inc. (NYSE:LPS). AQR Capital Management has a $32 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Michael Blitzer of Kingstown Capital Management, with a $30 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Chuck Royce’s Royce & Associates, Bill Miller’s Legg Mason Capital Management and Lee Hobson’s Highside Capital Management.
Since Lender Processing Services, Inc. (NYSE:LPS) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of money managers that slashed their full holdings last quarter. Intriguingly, Douglas Dillard Jr. and Raj D. Venkatesan’s Standard Pacific Capital cut the biggest investment of the “upper crust” of funds we watch, comprising about $56 million in stock., and Richard Driehaus of Driehaus Capital was right behind this move, as the fund cut about $2 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds last quarter.
Insider trading activity in Lender Processing Services, Inc. (NYSE:LPS)
Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has experienced transactions within the past half-year. Over the latest half-year time frame, Lender Processing Services, Inc. (NYSE:LPS) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns exhibited by our tactics, everyday investors should always monitor hedge fund and insider trading activity, and Lender Processing Services, Inc. (NYSE:LPS) is no exception.
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.