Fiserv, Inc. (NASDAQ:FISV) investors should be aware of a decrease in activity from the world’s largest hedge funds lately.
In today’s marketplace, there are many methods market participants can use to track publicly traded companies. A duo 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 elite investment managers can beat the broader indices by a superb margin (see just how much).
Equally as important, bullish insider trading activity is another way to break down the marketplace. Obviously, there are many incentives for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this tactic if you know where to look (learn more here).
Consequently, let’s take a look at the key action regarding Fiserv, Inc. (NASDAQ:FISV).
What have hedge funds been doing with Fiserv, Inc. (NASDAQ:FISV)?
In preparation for this year, a total of 18 of the hedge funds we track were bullish in this stock, a change of -5% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially.
When looking at the hedgies we track, Egerton Capital Limited, managed by John Armitage, holds the most valuable position in Fiserv, Inc. (NASDAQ:FISV). Egerton Capital Limited has a $135 million position in the stock, comprising 5% of its 13F portfolio. Coming in second is Brave Warrior Capital, managed by Glenn Greenberg, which held a $112 million position; 0% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include Ricky Sandler’s Eminence Capital, Lou Simpson’s SQ Advisors and Steven Richman’s East Side Capital (RR Partners).
Due to the fact that Fiserv, Inc. (NASDAQ:FISV) has witnessed bearish sentiment from hedge fund managers, logic holds that there were a few hedge funds that elected to cut their positions entirely last quarter. Interestingly, Ken Gray and Steve Walsh’s Bryn Mawr Capital dumped the largest position of the 450+ funds we track, comprising about $6 million in stock.. Anand Parekh’s fund, Alyeska Investment Group, also dropped its stock, about $1 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds last quarter.
How are insiders trading Fiserv, Inc. (NASDAQ:FISV)?
Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past six months. Over the last six-month time period, Fiserv, Inc. (NASDAQ:FISV) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
With the results demonstrated by our time-tested strategies, retail investors should always watch hedge fund and insider trading activity, and Fiserv, Inc. (NASDAQ:FISV) is an important part of this process.
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