To the average investor, there are many metrics shareholders can use to track Mr. Market. A couple of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can beat their index-focused peers by a solid amount (see just how much).
Just as crucial, optimistic insider trading sentiment is another way to look at the financial markets. There are lots of reasons for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).
Keeping this in mind, it's important to discuss the latest info surrounding Avon Products, Inc. (NYSE:AVP).
At the end of the second quarter, a total of 28 of the hedge funds we track held long positions in this stock, a change of 12% from the previous quarter. With the smart money's capital changing hands, there exists an "upper tier" of key hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, Yacktman Asset Management, managed by Donald Yacktman, holds the most valuable position in Avon Products, Inc. (NYSE:AVP). Yacktman Asset Management has a $398.4 million position in the stock, comprising 1.9% of its 13F portfolio. Sitting at the No. 2 spot is Columbus Circle Investors, managed by Donald Chiboucis, which held a $84.7 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Phill Gross and Robert Atchinson's Adage Capital Management, Jacob Gottlieb's Visium Asset Management and D. E. Shaw's D E Shaw.
With a general bullishness amongst the titans, certain money managers were leading the bulls' herd. Yacktman Asset Management, managed by Donald Yacktman, assembled the biggest position in Avon Products, Inc. (NYSE:AVP). Yacktman Asset Management had 398.4 million invested in the company at the end of the quarter. Donald Chiboucis's Columbus Circle Investors also made a $84.7 million investment in the stock during the quarter. The other funds with brand new AVP positions are Phill Gross and Robert Atchinson's Adage Capital Management, Jacob Gottlieb's Visium Asset Management, and D. E. Shaw's D E Shaw.
Insider buying made by high-level executives is most useful when the company in question has experienced transactions within the past six months. Over the last 180-day time period, Avon Products, Inc. (NYSE:AVP) has seen 3 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
We'll check out the relationship between both of these indicators in other stocks similar to Avon Products, Inc. (NYSE:AVP). These stocks are Colgate-Palmolive Company (NYSE:CL), Kimberly Clark Corp (NYSE:KMB), Nu Skin Enterprises, Inc. (NYSE:NUS), Estee Lauder Companies Inc (NYSE:EL), and Energizer Holdings, Inc. (NYSE:ENR). This group of stocks are the members of the personal products industry and their market caps resemble AVP's market cap.