This Metric Says You Are Smart to Sell Morningstar, Inc. (MORN)

Page 1 of 2

In the eyes of many investors, hedge funds are perceived as bloated, outdated financial vehicles of an era lost to time. Although there are over 8,000 hedge funds in operation currently, this site looks at the bigwigs of this group, close to 525 funds. Analysts calculate that this group oversees most of all hedge funds’ total capital, and by monitoring their highest quality investments, we’ve come up with a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per 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 trumped the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Morningstar, Inc. (NASDAQ:MORN)

Just as useful, bullish insider trading activity is a second way to analyze the stock market universe. As the old adage goes: there are plenty of incentives for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).

Thus, it’s important to analyze the recent info about Morningstar, Inc. (NASDAQ:MORN).

What have hedge funds been doing with Morningstar, Inc. (NASDAQ:MORN)?

At Q2′s end, a total of 5 of the hedge funds we track held long positions in this stock, a change of -38% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their holdings meaningfully.

Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the largest position in Morningstar, Inc. (NASDAQ:MORN). Royce & Associates has a $142.5 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is Bares Capital Management, managed by Brian Bares, which held a $13.6 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and Ken Griffin’s Citadel Investment Group.

Judging by the fact that Morningstar, Inc. (NASDAQ:MORN) has witnessed dropping sentiment from the smart money’s best and brightest, it’s easy to see that there exists a select few funds who sold off their full holdings at the end of the second quarter. Intriguingly, Israel Englander’s Millennium Management dumped the largest stake of the “upper crust” of funds we key on, valued at about $1.1 million in stock, and D. E. Shaw of D E Shaw was right behind this move, as the fund dumped about $0.8 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 3 funds at the end of the second quarter.

How have insiders been trading Morningstar, Inc. (NASDAQ:MORN)?

Insider buying made by high-level executives is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the latest six-month time period, Morningstar, Inc. (NASDAQ:MORN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Morningstar, Inc. (NASDAQ:MORN). These stocks are DigitalGlobe Inc (NYSE:DGI), FactSet Research Systems Inc. (NYSE:FDS), Broadridge Financial Solutions, Inc. (NYSE:BR), Dun & Bradstreet Corp (NYSE:DNB), and DST Systems, Inc. (NYSE:DST). This group of stocks are in the information & delivery services industry and their market caps match MORN’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!