Alleghany Corporation (NYSE:Y) has seen an increase in hedge fund sentiment lately.
In the 21st century investor’s toolkit, there are dozens of metrics market participants can use to watch stocks. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can trounce the S&P 500 by a superb amount (see just how much).
Equally as beneficial, bullish insider trading activity is another way to break down the world of equities. Just as you’d expect, there are plenty of incentives for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this tactic if investors understand what to do (learn more here).
With these “truths” under our belt, it’s important to take a peek at the recent action regarding Alleghany Corporation (NYSE:Y).
How have hedgies been trading Alleghany Corporation (NYSE:Y)?
In preparation for this year, a total of 26 of the hedge funds we track were long in this stock, a change of 4% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Alleghany Corporation (NYSE:Y). Royce & Associates has a $217 million billion position in the stock, comprising 0.7% of its 13F portfolio. The second largest stake is held by Third Avenue Management, managed by Martin Whitman, which held a $112 million position; the fund has 2.4% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, John Osterweis’s Osterweis Capital Management and Jean-Marie Eveillard’s First Eagle Investment Management.
As one would reasonably expect, key money managers have been driving this bullishness. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the most valuable position in Alleghany Corporation (NYSE:Y). Arrowstreet Capital had 100 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $5 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jim Simons’s Renaissance Technologies, and Ken Griffin’s Citadel Investment Group.
What do corporate executives and insiders think about Alleghany Corporation (NYSE:Y)?
Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time frame, Alleghany Corporation (NYSE:Y) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s time-tested strategies, retail investors must always watch hedge fund and insider trading activity, and Alleghany Corporation (NYSE:Y) shareholders fit into this picture quite nicely.
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