Vantiv Inc (NYSE:VNTV) was in 17 hedge funds' portfolio at the end of the fourth quarter of 2012. VNTV has seen an increase in enthusiasm from smart money in recent months. There were 12 hedge funds in our database with VNTV holdings at the end of the previous quarter.
To most investors, hedge funds are perceived as underperforming, old financial tools of yesteryear. While there are greater than 8000 funds with their doors open at the moment, we at Insider Monkey hone in on the aristocrats of this group, about 450 funds. It is estimated that this group oversees the lion's share of the smart money's total asset base, and by monitoring their best investments, we have deciphered a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).
Equally as integral, optimistic insider trading sentiment is another way to parse down the investments you're interested in. There are a number of motivations for an executive to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this tactic if investors know what to do (learn more here).
With these "truths" under our belt, let's take a look at the key action encompassing Vantiv Inc (NYSE:VNTV).
At year's end, a total of 17 of the hedge funds we track held long positions in this stock, a change of 42% from the third quarter. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were boosting their holdings considerably.
Of the funds we track, Robert Pohly's Samlyn Capital had the biggest position in Vantiv Inc (NYSE:VNTV), worth close to $18 million, comprising 0.6% of its total 13F portfolio. On Samlyn Capital's heels is Alyeska Investment Group, managed by Anand Parekh, which held a $16 million position; 0.6% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Joe DiMenna's ZWEIG DIMENNA PARTNERS, John Lykouretzos's Hoplite Capital Management and Jeffrey Vinik's Vinik Asset Management.
As aggregate interest increased, key money managers were leading the bulls' herd. Samlyn Capital, managed by Robert Pohly, assembled the biggest position in Vantiv Inc (NYSE:VNTV). Samlyn Capital had 18 million invested in the company at the end of the quarter. John Lykouretzos's Hoplite Capital Management also made a $14 million investment in the stock during the quarter. The other funds with brand new VNTV positions are Daniel S. Och's OZ Management, Jim Simons's Renaissance Technologies, and Malcolm Fairbairn's Ascend Capital.
Insider trading activity, especially when it's bullish, is best served when the company in question has seen transactions within the past six months. Over the last half-year time frame, Vantiv Inc (NYSE:VNTV) has seen zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
With the results shown by our strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Vantiv Inc (NYSE:VNTV) applies perfectly to this mantra.
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.