The Chubb Corporation (NYSE:CB) investors should be aware of a decrease in hedge fund sentiment recently.
To the average investor, there are a multitude of metrics shareholders can use to track 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 elite fund managers can outpace the broader indices by a healthy margin (see just how much).
Equally as important, positive insider trading sentiment is another way to parse down the stock market universe. Obviously, there are plenty of stimuli for an executive to get rid of 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 strategy if shareholders know where to look (learn more here).
Keeping this in mind, it’s important to take a look at the recent action encompassing The Chubb Corporation (NYSE:CB).
Hedge fund activity in The Chubb Corporation (NYSE:CB)
Heading into Q2, a total of 32 of the hedge funds we track were long in this stock, a change of -3% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes significantly.
When looking at the hedgies we track, Ric Dillon’s Diamond Hill Capital had the most valuable position in The Chubb Corporation (NYSE:CB), worth close to $82.5 million, accounting for 0.9% of its total 13F portfolio. Coming in second is Bernard Horn of Polaris Capital Management, with a $54.6 million position; the fund has 3.2% of its 13F portfolio invested in the stock. Some other peers that are bullish include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
Due to the fact that The Chubb Corporation (NYSE:CB) has experienced declining sentiment from the smart money, it’s easy to see that there is a sect of money managers that elected to cut their entire stakes in Q1. At the top of the heap, Charles Davidson’s Wexford Capital dumped the largest position of the 450+ funds we track, worth close to $16.5 million in stock.. Daniel Lascano’s fund, Lomas Capital Management, also said goodbye to its stock, about $5.6 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 1 funds in Q1.
Insider trading activity in The Chubb Corporation (NYSE:CB)
Bullish insider trading is best served when the company in focus has seen transactions within the past half-year. Over the latest 180-day time period, The Chubb Corporation (NYSE:CB) has seen zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to The Chubb Corporation (NYSE:CB). These stocks are The Progressive Corporation (NYSE:PGR), Travelers Companies Inc (NYSE:TRV), ACE Limited (NYSE:ACE), Loews Corporation (NYSE:L), and The Allstate Corporation (NYSE:ALL). This group of stocks are the members of the property & casualty insurance industry and their market caps match CB’s market cap.