This Metric Says You Are Smart to Sell Broadridge Financial Solutions, Inc. (BR)

Page 1 of 2

Broadridge Financial Solutions, Inc. (NYSE:BR) was in 14 hedge funds’ portfolio at the end of the first quarter of 2013. BR investors should be aware of a decrease in hedge fund interest lately. There were 17 hedge funds in our database with BR holdings at the end of the previous quarter.

Broadridge Financial Solutions, Inc. (NYSE:BR)

In the eyes of most investors, hedge funds are seen as underperforming, outdated financial tools of yesteryear. While there are greater than 8000 funds with their doors open at the moment, we at Insider Monkey look at the moguls of this group, about 450 funds. It is widely believed that this group oversees the lion’s share of the smart money’s total asset base, and by monitoring their highest performing picks, we have identified a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a 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 topped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Equally as beneficial, bullish insider trading activity is another way to break down the financial markets. Obviously, there are a number of stimuli for an insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this strategy if shareholders know what to do (learn more here).

Now, we’re going to take a peek at the latest action regarding Broadridge Financial Solutions, Inc. (NYSE:BR).

How are hedge funds trading Broadridge Financial Solutions, Inc. (NYSE:BR)?

At the end of the first quarter, a total of 14 of the hedge funds we track were long in this stock, a change of -18% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially.

When looking at the hedgies we track, Blue Harbour Group, managed by Clifton S. Robbins, holds the largest position in Broadridge Financial Solutions, Inc. (NYSE:BR). Blue Harbour Group has a $49.5 million position in the stock, comprising 5.1% of its 13F portfolio. Sitting at the No. 2 spot is Martin Whitman of Third Avenue Management, with a $44.3 million position; 0.9% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include D. E. Shaw’s D E Shaw, Ric Dillon’s Diamond Hill Capital and Amy Minella’s Cardinal Capital.

Due to the fact that Broadridge Financial Solutions, Inc. (NYSE:BR) has witnessed a declination in interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of funds who sold off their full holdings heading into Q2. At the top of the heap, Jim Simons’s Renaissance Technologies sold off the biggest position of the 450+ funds we monitor, totaling about $9.2 million in stock., and Leon Cooperman of Omega Advisors was right behind this move, as the fund sold off about $3.7 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 3 funds heading into Q2.

What do corporate executives and insiders think about Broadridge Financial Solutions, Inc. (NYSE:BR)?

Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past six months. Over the last half-year time period, Broadridge Financial Solutions, Inc. (NYSE:BR) has seen zero unique insiders buying, and 9 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Broadridge Financial Solutions, Inc. (NYSE:BR). These stocks are DigitalGlobe Inc (NYSE:DGI), FactSet Research Systems Inc. (NYSE:FDS), Dun & Bradstreet Corp (NYSE:DNB), Morningstar, Inc. (NASDAQ:MORN), and DST Systems, Inc. (NYSE:DST). All of these stocks are in the information & delivery services industry and their market caps match BR’s market cap.

Page 1 of 2
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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

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

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!