International Speedway Corporation (NASDAQ:ISCA) investors should pay attention to a decrease in hedge fund sentiment in recent months.
If you’d ask most market participants, hedge funds are seen as underperforming, outdated financial tools of the past. While there are over 8000 funds trading at present, we hone in on the upper echelon of this group, close to 450 funds. It is widely believed that this group controls most of the hedge fund industry’s total capital, and by paying attention to their top picks, we have identified a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Equally as beneficial, positive insider trading sentiment is a second way to break down the stock market universe. As the old adage goes: there are many reasons for an upper level exec to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this tactic if “monkeys” know where to look (learn more here).
Now, it’s important to take a look at the latest action regarding International Speedway Corporation (NASDAQ:ISCA).
Hedge fund activity in International Speedway Corporation (NASDAQ:ISCA)
At Q1’s end, a total of 10 of the hedge funds we track held long positions in this stock, a change of -23% from the previous quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably.
Of the funds we track, Ariel Investments, managed by John W. Rogers, holds the most valuable position in International Speedway Corporation (NASDAQ:ISCA). Ariel Investments has a $174.7 million position in the stock, comprising 3% of its 13F portfolio. Sitting at the No. 2 spot is Robert Joseph Caruso of Select Equity Group, with a $19.5 million position; 0.3% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Peter S. Park’s Park West Asset Management, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.
Judging by the fact that International Speedway Corporation (NASDAQ:ISCA) has faced falling interest from the aggregate hedge fund industry, it’s safe to say that there were a few fund managers that decided to sell off their positions entirely heading into Q2. It’s worth mentioning that David Dreman’s Dreman Value Management dropped the biggest stake of all the hedgies we watch, worth about $22.6 million in stock., and Jean-Marie Eveillard of First Eagle Investment Management was right behind this move, as the fund cut about $12.2 million worth. These moves are interesting, as total hedge fund interest fell by 3 funds heading into Q2.
How have insiders been trading International Speedway Corporation (NASDAQ:ISCA)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, International Speedway Corporation (NASDAQ:ISCA) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to International Speedway Corporation (NASDAQ:ISCA). These stocks are Dover Motorsports, Inc. (NYSE:DVD), Bowl America Incorporated (NYSEAMEX:BWL-A), Town Sports International Holdings, Inc. (NASDAQ:CLUB), Speedway Motorsports, Inc. (NYSE:TRK), and Life Time Fitness, Inc. (NYSE:LTM). This group of stocks are in the sporting activities industry and their market caps are closest to ISCA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Dover Motorsports, Inc. (NYSE:DVD) | 7 | 0 | 0 |
| Bowl America Incorporated (NYSEAMEX:BWL-A) | 1 | 0 | 0 |
| Town Sports International Holdings, Inc. (NASDAQ:CLUB) | 13 | 1 | 4 |
| Speedway Motorsports, Inc. (NYSE:TRK) | 6 | 1 | 1 |
| Life Time Fitness, Inc. (NYSE:LTM) | 12 | 1 | 5 |
With the results shown by the aforementioned time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and International Speedway Corporation (NASDAQ:ISCA) applies perfectly to this mantra.
