Deluxe Corporation (NYSE:DLX) was in 12 hedge funds’ portfolio at the end of March. DLX shareholders have witnessed an increase in hedge fund sentiment of late. There were 8 hedge funds in our database with DLX positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are tons of gauges shareholders can use to monitor the equity markets. 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 top picks of the best money managers can outclass the market by a significant amount (see just how much).
Equally as important, optimistic insider trading activity is another way to parse down the world of equities. As the old adage goes: there are plenty of reasons for an executive to sell shares of his or her company, but just one, very obvious reason why they would buy. Various academic studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).
Consequently, let’s take a peek at the recent action regarding Deluxe Corporation (NYSE:DLX).
How have hedgies been trading Deluxe Corporation (NYSE:DLX)?
In preparation for this quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 50% from the first quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their stakes meaningfully.
When looking at the hedgies we track, Robert B. Gillam’s McKinley Capital Management had the largest position in Deluxe Corporation (NYSE:DLX), worth close to $31.7 million, accounting for 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is Donald Chiboucis of Columbus Circle Investors, with a $31.4 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Joel Greenblatt’s Gotham Asset Management and Israel Englander’s Millennium Management.
Now, key money managers were breaking ground themselves. Columbus Circle Investors, managed by Donald Chiboucis, created the largest position in Deluxe Corporation (NYSE:DLX). Columbus Circle Investors had 31.4 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $1.3 million investment in the stock during the quarter. The other funds with brand new DLX positions are D. E. Shaw’s D E Shaw, Matthew Hulsizer’s PEAK6 Capital Management, and Mike Vranos’s Ellington.
How have insiders been trading Deluxe Corporation (NYSE:DLX)?
Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time period, Deluxe Corporation (NYSE:DLX) has seen zero unique insiders buying, and 7 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Deluxe Corporation (NYSE:DLX). These stocks are HMS Holdings Corp. (NASDAQ:HMSY), Ritchie Bros. Auctioneers (USA) (NYSE:RBA), RR Donnelley & Sons Co (NASDAQ:RRD), Lender Processing Services, Inc. (NYSE:LPS), and Portfolio Recovery Associates, Inc. (NASDAQ:PRAA). This group of stocks are in the business services industry and their market caps are similar to DLX’s market cap.