Do Hedge Funds and Insiders Love Broadridge Financial Solutions, Inc. (BR)?

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Is Broadridge Financial Solutions, Inc. (NYSE:BR) a good investment?

To many investors, hedge funds are perceived as useless, outdated investment tools of a forgotten age. Although there are more than 8,000 hedge funds trading today, this site looks at the leaders of this club, about 525 funds. It is assumed that this group controls the majority of the hedge fund industry’s total assets, and by watching their best picks, we’ve revealed a number of investment strategies that have historically outstripped the S&P 500. 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 outperformed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Just as key, optimistic insider trading sentiment is another way to analyze the stock market universe. There are plenty of motivations for an executive to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this method if investors understand where to look (learn more here).

Now that that’s out of the way, it’s important to discuss the newest info for Broadridge Financial Solutions, Inc. (NYSE:BR).

How have hedgies been trading Broadridge Financial Solutions, Inc. (NYSE:BR)?

Heading into Q3, a total of 15 of the hedge funds we track were long in this stock, a change of 7% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings significantly.

Broadridge Financial Solutions, Inc. (NYSE:BR)Out of the hedge funds we follow, Harris Associates, managed by Natixis Global Asset Management, holds the most valuable position in Broadridge Financial Solutions, Inc. (NYSE:BR). Harris Associates has a $184.8 million position in the stock, comprising 0.4% of its 13F portfolio. On Harris Associates’s heels is Ric Dillon of Diamond Hill Capital, with a $28.5 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Amy Minella’s Cardinal Capital, Martin Whitman’s Third Avenue Management and Chuck Royce’s Royce & Associates.

As aggregate interest spiked, certain money managers were breaking ground themselves. Diamond Hill Capital, managed by Ric Dillon, initiated the most valuable position in Broadridge Financial Solutions, Inc. (NYSE:BR). Diamond Hill Capital had 28.5 million invested in the company at the end of the quarter. Amy Minella’s Cardinal Capital also made a $22.6 million investment in the stock during the quarter. The following funds were also among the new BR investors: Martin Whitman’s Third Avenue Management, Chuck Royce’s Royce & Associates, and D. E. Shaw’s D E Shaw.

What do corporate executives and insiders think about Broadridge Financial Solutions, Inc. (NYSE:BR)?

Insider buying is best served when the company in question has seen transactions within the past six months. Over the latest six-month time frame, Broadridge Financial Solutions, Inc. (NYSE:BR) has seen zero unique insiders buying, and zero 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 Broadridge Financial Solutions, Inc. (NYSE:BR). These stocks are DigitalGlobe Inc (NYSE:DGI), FactSet Research Systems Inc. (NYSE:FDS), Dun & Bradstreet Corp (NYSE:DNB), Morningstar, Inc. (NASDAQ:MORN), and DST Systems, Inc. (NYSE:DST). This group of stocks belong to the information & delivery services industry and their market caps are similar to BR’s market cap.

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