Northern Trust Corporation (NASDAQ:NTRS): Insiders Are Dumping, Should You?

Northern Trust Corporation (NASDAQ:NTRS) was in 21 hedge funds’ portfolio at the end of December. NTRS has seen a decrease in enthusiasm from smart money recently. There were 22 hedge funds in our database with NTRS positions at the end of the previous quarter.

In the financial world, there are tons of metrics investors can use to analyze Mr. Market. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can outclass the S&P 500 by a superb margin (see just how much).

Northern Trust Corporation (NASDAQ:NTRS)

Just as beneficial, optimistic insider trading activity is another way to parse down the financial markets. Obviously, there are a variety of stimuli for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this method if piggybackers understand where to look (learn more here).

Keeping this in mind, it’s important to take a glance at the recent action regarding Northern Trust Corporation (NASDAQ:NTRS).

What have hedge funds been doing with Northern Trust Corporation (NASDAQ:NTRS)?

At year’s end, a total of 21 of the hedge funds we track were long in this stock, a change of -5% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes meaningfully.

Of the funds we track, Generation Investment Management, managed by David Blood and Al Gore, holds the largest position in Northern Trust Corporation (NASDAQ:NTRS). Generation Investment Management has a $122 million position in the stock, comprising 2.9% of its 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $98 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Mario Gabelli’s GAMCO Investors, John W. Rogers’s Ariel Investments and Donald Yacktman’s Yacktman Asset Management.

Due to the fact that Northern Trust Corporation (NASDAQ:NTRS) has faced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers who sold off their positions entirely last quarter. Interestingly, Russell Hawkins’s Hawkins Capital dropped the largest investment of the “upper crust” of funds we key on, totaling close to $5 million in stock.. David Costen Haley’s fund, HBK Investments, also dumped its stock, about $1 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 1 funds last quarter.

Insider trading activity in Northern Trust Corporation (NASDAQ:NTRS)

Bullish insider trading is best served when the company in question has seen transactions within the past 180 days. Over the last 180-day time frame, Northern Trust Corporation (NASDAQ:NTRS) has seen zero unique insiders buying, and 9 insider sales (see the details of insider trades here).

With the results shown by the aforementioned studies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Northern Trust Corporation (NASDAQ:NTRS) 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

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

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

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!