Should MedAssets, Inc. (NASDAQ:MDAS) track the following data?
If you were to ask many investors, hedge funds are assumed to be bloated, outdated financial tools of an era lost to time. Although there are over 8,000 hedge funds with their doors open currently, this site focuses on the crème de la crème of this club, about 525 funds. It is widely held that this group has its hands on the lion's share of the smart money's total assets, and by keeping an eye on their highest performing picks, we've identified a few investment strategies that have historically outstripped the S&P 500. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Just as key, bullish insider trading activity is another way to analyze the investments you're interested in. Obviously, there are a number of reasons for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).
What's more, it's important to discuss the newest info surrounding Lexmark International Inc (NYSE:LXK).
At Q2's end, a total of 14 of the hedge funds we track were bullish in this stock, a change of -7% from the first quarter. With hedgies' capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully.
When using filings from the hedgies we track, Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, holds the biggest position in Lexmark International Inc (NYSE:LXK). Blue Mountain Capital has a $91.6 million position in the stock, comprising 3.8% of its 13F portfolio. The second largest stake is held by Iridian Asset Management, managed by David Cohen and Harold Levy, which held a $75.7 million position; the fund has 1% of its 13F portfolio invested in the stock. Other peers that hold long positions include D. E. Shaw's D E Shaw, Cliff Asness's AQR Capital Management and Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital.
Since Lexmark International Inc (NYSE:LXK) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedgies who sold off their positions entirely in Q1. At the top of the heap, John Overdeck and David Siegel's Two Sigma Advisors sold off the biggest investment of the "upper crust" of funds we key on, totaling an estimated $2.1 million in stock, and Israel Englander of Millennium Management was right behind this move, as the fund said goodbye to about $1.9 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 1 funds in Q1.
Insider buying made by high-level executives is most useful when the company in question has experienced transactions within the past 180 days. Over the last 180-day time period, Lexmark International Inc (NYSE:LXK) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Using the returns explained by our tactics, regular investors must always pay attention to hedge fund and insider trading activity, and Lexmark International Inc (NYSE:LXK) is an important part of this process.