Is Thomson Reuters Corporation (USA) (NYSE:TRI) the right pick for your portfolio? Prominent investors are getting less bullish. The number of long hedge fund positions were trimmed by 1 recently.
In the financial world, there are many methods investors can use to analyze publicly traded companies. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outclass their index-focused peers by a significant amount (see just how much).
Equally as integral, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. 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 empirical studies have demonstrated the impressive potential of this strategy if “monkeys” understand where to look (learn more here).
Consequently, let’s take a peek at the latest action surrounding Thomson Reuters Corporation (USA) (NYSE:TRI).
Hedge fund activity in Thomson Reuters Corporation (USA) (NYSE:TRI)
In preparation for this year, a total of 9 of the hedge funds we track were long in this stock, a change of -10% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings significantly.
Of the funds we track, Tetrem Capital Management, managed by Daniel Bubis, holds the biggest position in Thomson Reuters Corporation (USA) (NYSE:TRI). Tetrem Capital Management has a $105 million position in the stock, comprising 3.1% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $12 million position; 0% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include David Dreman’s Dreman Value Management, Steven Cohen’s SAC Capital Advisors and Joel Greenblatt’s Gotham Asset Management.
Because Thomson Reuters Corporation (USA) (NYSE:TRI) has faced declining sentiment from the aggregate hedge fund industry, we can see that there were a few funds who sold off their full holdings last quarter. At the top of the heap, Douglas W. Case’s Advanced Investment Partners sold off the biggest investment of the 450+ funds we key on, worth close to $2 million in stock., and Richard Schimel of Diamondback Capital was right behind this move, as the fund sold off about $0 million worth. These moves are important to note, as total hedge fund interest fell by 1 funds last quarter.
How have insiders been trading Thomson Reuters Corporation (USA) (NYSE:TRI)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, Thomson Reuters Corporation (USA) (NYSE:TRI) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Thomson Reuters Corporation (USA) (NYSE:TRI). These stocks are Morningstar, Inc. (NASDAQ:MORN), Dun & Bradstreet Corp (NYSE:DNB), FactSet Research Systems Inc. (NYSE:FDS), IHS Inc. (NYSE:IHS), and Nielsen Hldg NV (NYSE:NLSN). This group of stocks belong to the information & delivery services industry and their market caps match TRI’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Morningstar, Inc. (NASDAQ:MORN)||8||0||10|
|Dun & Bradstreet Corp (NYSE:DNB)||12||0||5|
|FactSet Research Systems Inc. (NYSE:FDS)||10||0||7|
|IHS Inc. (NYSE:IHS)||8||2||8|
|Nielsen Hldg NV (NYSE:NLSN)||17||0||18|
With the results exhibited by our research, retail investors must always pay attention to hedge fund and insider trading activity, and Thomson Reuters Corporation (USA) (NYSE:TRI) applies perfectly to this mantra.