Should You Avoid TD Ameritrade Holding Corp. (AMTD)?

TD Ameritrade Holding Corp. (NYSE:AMTD) shareholders have witnessed a decrease in hedge fund interest recently.

According to most shareholders, hedge funds are seen as slow, old investment vehicles of the past. While there are greater than 8000 funds with their doors open today, we look at the leaders of this group, close to 450 funds. It is estimated that this group has its hands on the majority of the smart money’s total asset base, and by watching their top equity investments, we have revealed a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per 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 outclassed the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

TD Ameritrade Holding Corp. (NYSE:AMTD)

Equally as key, positive insider trading activity is another way to parse down the financial markets. Obviously, there are a variety of stimuli for an executive to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this tactic if piggybackers understand what to do (learn more here).

Now, let’s take a gander at the latest action regarding TD Ameritrade Holding Corp. (NYSE:AMTD).

How are hedge funds trading TD Ameritrade Holding Corp. (NYSE:AMTD)?

At the end of the fourth quarter, a total of 13 of the hedge funds we track held long positions in this stock, a change of -41% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the biggest position in TD Ameritrade Holding Corp. (NYSE:AMTD). Renaissance Technologies has a $53.6 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Akre Capital Management, managed by Charles Akre, which held a $53.2 million position; the fund has 3.8% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Ken Griffin’s Citadel Investment Group, Bill Miller’s Legg Mason Capital Management and Israel Englander’s Millennium Management.

Because TD Ameritrade Holding Corp. (NYSE:AMTD) has experienced bearish sentiment from the aggregate hedge fund industry, we can see that there exists a select few fund managers who were dropping their entire stakes last quarter. At the top of the heap, Steven Cohen’s SAC Capital Advisors dropped the biggest stake of all the hedgies we watch, worth an estimated $57.5 million in stock., and Richard Schimel of Diamondback Capital was right behind this move, as the fund dumped about $20.5 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 9 funds last quarter.

How are insiders trading TD Ameritrade Holding Corp. (NYSE:AMTD)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past 180 days. Over the latest six-month time frame, TD Ameritrade Holding Corp. (NYSE:AMTD) has experienced 2 unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to TD Ameritrade Holding Corp. (NYSE:AMTD). These stocks are E TRADE Financial Corporation (NASDAQ:ETFC), LPL Financial Holdings Inc (NASDAQ:LPLA), Nomura Holdings, Inc. (ADR) (NYSE:NMR), Charles Schwab Corp (NYSE:SCHW), and CME Group Inc (NASDAQ:CME). This group of stocks are the members of the investment brokerage – national industry and their market caps resemble AMTD’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
E TRADE Financial Corporation (NASDAQ:ETFC) 30 0 1
LPL Financial Holdings Inc (NASDAQ:LPLA) 12 0 4
Nomura Holdings, Inc. (ADR) (NYSE:NMR) 5 0 0
Charles Schwab Corp (NYSE:SCHW) 27 0 5
CME Group Inc (NASDAQ:CME) 31 0 8

With the results exhibited by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading activity, and TD Ameritrade Holding Corp. (NYSE:AMTD) is an important part of this process.

Click here to learn why you should track hedge funds

blog comments powered by Disqus
Insider Monkey Headlines
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

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

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!