Cedar Fair, L.P. (NYSE:FUN) investors should pay attention to a decrease in support from the world’s most elite money managers recently.
In today’s marketplace, there are many indicators market participants can use to monitor Mr. Market. A duo of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outperform their index-focused peers by a healthy margin (see just how much).
Equally as important, optimistic insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are many reasons for an executive to downsize shares of his or her company, but only one, very simple reason why they would buy. Several academic studies have demonstrated the useful potential of this method if investors know where to look (learn more here).
Keeping this in mind, it’s important to take a glance at the latest action encompassing Cedar Fair, L.P. (NYSE:FUN).
How have hedgies been trading Cedar Fair, L.P. (NYSE:FUN)?
In preparation for this quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of -17% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.
According to our comprehensive database, Remy Trafelet’s Trafelet Capital had the largest position in Cedar Fair, L.P. (NYSE:FUN), worth close to $39.3 million, accounting for 22.2% of its total 13F portfolio. Coming in second is Yale M. Fergang and Robert W. Medway of Royal Capital, with a $39.2 million position; 9.6% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include Thomas E. Claugus’s GMT Capital, James Dondero’s Highland Capital Management and Charles Anderson’s Fox Point Capital Management.
Seeing as Cedar Fair, L.P. (NYSE:FUN) has faced bearish sentiment from hedge fund managers, we can see that there was a specific group of hedge funds that decided to sell off their full holdings in Q1. At the top of the heap, Stephen Loukas, David A. Lorber, Zachary George’s FrontFour Capital Group cut the biggest investment of the 450+ funds we watch, comprising about $5.9 million in stock., and Robert B. Gillam of McKinley Capital Management was right behind this move, as the fund said goodbye to about $0.6 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 2 funds in Q1.
What do corporate executives and insiders think about Cedar Fair, L.P. (NYSE:FUN)?
Insider purchases made by high-level executives is best served when the primary stock in question has seen transactions within the past 180 days. Over the latest six-month time frame, Cedar Fair, L.P. (NYSE:FUN) 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 Cedar Fair, L.P. (NYSE:FUN). These stocks are Priceline.com Inc (NASDAQ:PCLN), Carnival plc (ADR) (NYSE:CUK), MakeMyTrip Limited (NASDAQ:MMYT), Orbitz Worldwide, Inc. (NYSE:OWW), and Six Flags Entertainment Corp (NYSE:SIX). This group of stocks belong to the general entertainment industry and their market caps are closest to FUN’s market cap.