In the financial world, there are a multitude of indicators shareholders can use to analyze their holdings. Two of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite investment managers can outperform the market by a healthy amount (see just how much
Equally as key, positive insider trading activity is another way to look at the world of equities. As the old adage goes: there are a variety of stimuli for an executive to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this method if "monkeys" know what to do (learn more here
Keeping this in mind, we're going to examine the recent info about Arch Capital Group Ltd. (NASDAQ:ACGL
What does the smart money think about Arch Capital Group Ltd. (NASDAQ:ACGL)?
Heading into Q3, a total of 12 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies' sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes considerably.
When using filings from the hedgies we track, FPR Partners, managed by Bob Peck and Andy Raab, holds the largest position in Arch Capital Group Ltd. (NASDAQ:ACGL). FPR Partners has a $284.8 million position in the stock, comprising 11.6% of its 13F portfolio. The second largest stake is held by Brian Ashford-Russell and Tim Woolley of Polar Capital, with a $43.5 million position; 1.5% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Martin Whitman's Third Avenue Management, Crispin Odey's Odey Asset Management Group and Cliff Asness's AQR Capital Management.
Since Arch Capital Group Ltd. (NASDAQ:ACGL) has witnessed dropping sentiment from the entirety of the hedge funds we track, it's easy to see that there were a few hedgies that decided to sell off their full holdings heading into Q2. It's worth mentioning that Robert Pitts's Steadfast Capital Management
said goodbye to the biggest investment of the 450+ funds we watch, totaling close to $6.6 million in call options.. Bob Peck and Andy Raab's fund, FPR Partners
, also sold off its call options., about $5.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Arch Capital Group Ltd. (NASDAQ:ACGL)?
Bullish insider trading is most useful when the company we're looking at has seen transactions within the past 180 days. Over the latest 180-day time period, Arch Capital Group Ltd. (NASDAQ:ACGL) has experienced zero unique insiders purchasing, 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 Arch Capital Group Ltd. (NASDAQ:ACGL). These stocks are Cna Financial Corp (NYSE:CNA
), W.R. Berkley Corporation (NYSE:WRB
), Everest Re Group Ltd (NYSE:RE
), Cincinnati Financial Corporation (NASDAQ:CINF
), and Alleghany Corporation (NYSE:Y
). All of these stocks are in the property & casualty insurance industry and their market caps match ACGL's market cap.