The Chubb Corporation (NYSE:CB) has experienced an increase in hedge fund sentiment lately.
In the financial world, there are many methods shareholders can use to track their holdings. A pair of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can beat the broader indices by a healthy amount (see just how much).
Just as beneficial, optimistic insider trading activity is another way to break down the marketplace. Obviously, there are plenty of stimuli for a bullish insider to sell shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if you know what to do (learn more here).
Keeping this in mind, let’s take a gander at the recent action surrounding The Chubb Corporation (NYSE:CB).
Hedge fund activity in The Chubb Corporation (NYSE:CB)
In preparation for this year, a total of 30 of the hedge funds we track held long positions in this stock, a change of 25% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably.
Of the funds we track, Ric Dillon’s Diamond Hill Capital had the biggest position in The Chubb Corporation (NYSE:CB), worth close to $115 million, accounting for 1.3% of its total 13F portfolio. Sitting at the No. 2 spot is Bernard Horn of Polaris Capital Management, with a $47 million position; the fund has 3.4% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Phill Gross and Robert Atchinson’s Adage Capital Management, Charles Davidson’s Wexford Capital and SAC Subsidiary’s CR Intrinsic Investors.
As industrywide interest jumped, specific money managers were breaking ground themselves. Wexford Capital, managed by Charles Davidson, assembled the most outsized position in The Chubb Corporation (NYSE:CB). Wexford Capital had 16 million invested in the company at the end of the quarter. Robert Joseph Caruso’s Select Equity Group also initiated a $15 million position during the quarter. The other funds with new positions in the stock are John A. Levin’s Levin Capital Strategies, Israel Englander’s Millennium Management, and Malcolm Fairbairn’s Ascend Capital.
How have insiders been trading The Chubb Corporation (NYSE:CB)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last half-year time frame, The Chubb Corporation (NYSE:CB) has seen zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
With the results exhibited by our strategies, retail investors must always monitor hedge fund and insider trading activity, and The Chubb Corporation (NYSE:CB) is no exception.
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