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.
In the eyes of most investors, hedge funds are seen as underperforming, outdated financial tools of yesteryear.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.