Gannett Co., Inc. (NYSE:GCI) shareholders have witnessed a decrease in hedge fund sentiment lately.
In the 21st century investor’s toolkit, there are tons of methods market participants can use to watch Mr. Market. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the broader indices by a very impressive amount (see just how much).
Equally as integral, bullish insider trading activity is another way to parse down the world of equities. There are a number of reasons for an insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if “monkeys” know where to look (learn more here).
With all of this in mind, it’s important to take a glance at the recent action encompassing Gannett Co., Inc. (NYSE:GCI).
How have hedgies been trading Gannett Co., Inc. (NYSE:GCI)?
In preparation for this year, a total of 21 of the hedge funds we track held long positions in this stock, a change of -9% from the third quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.
Of the funds we track, Ariel Investments, managed by John W. Rogers, holds the biggest position in Gannett Co., Inc. (NYSE:GCI). Ariel Investments has a $159 million position in the stock, comprising 3.3% of its 13F portfolio. The second largest stake is held by AQR Capital Management, managed by Cliff Asness, which held a $33 million position; 1.8% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Warren Buffett’s Berkshire Hathaway, Phill Gross and Robert Atchinson’s Adage Capital Management and Leon Cooperman’s Omega Advisors.
Seeing as Gannett Co., Inc. (NYSE:GCI) has faced falling interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of money managers that slashed their full holdings heading into 2013. At the top of the heap, Alexander Mitchell’s Scopus Asset Management sold off the largest investment of all the hedgies we key on, comprising an estimated $12 million in stock.. Alexander Mitchell’s fund, Scopus Asset Management, also dumped its call options., about $11 million worth. These transactions are important to note, as total hedge fund interest dropped by 2 funds heading into 2013.
What do corporate executives and insiders think about Gannett Co., Inc. (NYSE:GCI)?
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time period, Gannett Co., Inc. (NYSE:GCI) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
With the returns shown by our tactics, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Gannett Co., Inc. (NYSE:GCI) is no exception.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.