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Should You Buy NYSE Euronext (NYSE:NYX)?

NYSE Euronext (NYSE:NYX) investors should be aware of an increase in hedge fund interest recently.

NYSE Euronext

In today’s marketplace, there are a multitude of metrics shareholders can use to monitor Mr. Market. A pair of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can trounce the market by a healthy margin (see just how much).

Just as important, positive insider trading activity is another way to break down the financial markets. As the old adage goes: there are lots of stimuli for a corporate insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” know where to look (learn more here).

With these “truths” under our belt, it’s important to take a peek at the key action encompassing NYSE Euronext (NYSE:NYX).

What have hedge funds been doing with NYSE Euronext (NYSE:NYX)?

In preparation for this year, a total of 40 of the hedge funds we track were bullish in this stock, a change of 135% from the third quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably.

When looking at the hedgies we track, Leon Cooperman’s Omega Advisors had the biggest position in NYSE Euronext (NYSE:NYX), worth close to $122 million billion, comprising 2.2% of its total 13F portfolio. The second largest stake is held by Taconic Capital, managed by Frank Brosens, which held a $69 million position; the fund has 4.1% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Robert Emil Zoellner’s Alpine Associates, Shane Finemore’s Manikay Partners and Eric Mindich’s Eton Park Capital.

As one would reasonably expect, some big names were breaking ground themselves. Taconic Capital, managed by Frank Brosens, assembled the biggest position in NYSE Euronext (NYSE:NYX). Taconic Capital had 69 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also made a $67 million investment in the stock during the quarter. The following funds were also among the new NYX investors: Shane Finemore’s Manikay Partners, Eric Mindich’s Eton Park Capital, and Neil Chriss’s Hutchin Hill Capital.

How have insiders been trading NYSE Euronext (NYSE:NYX)?

Insider purchases made by high-level executives is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time period, NYSE Euronext (NYSE:NYX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the returns shown by the aforementioned research, retail investors must always watch hedge fund and insider trading activity, and NYSE Euronext (NYSE:NYX) is an important part of this process.

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.

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