Marsh & McLennan Companies, Inc. (NYSE:MMC) was in 24 hedge funds’ portfolio at the end of the first quarter of 2013. MMC has experienced a decrease in activity from the world’s largest hedge funds recently. There were 25 hedge funds in our database with MMC holdings at the end of the previous quarter.
In the eyes of most market participants, hedge funds are viewed as underperforming, old investment tools of the past. While there are more than 8000 funds in operation today, we hone in on the bigwigs of this group, around 450 funds. It is estimated that this group has its hands on the lion’s share of the smart money’s total asset base, and by watching their top investments, we have unearthed a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Just as integral, optimistic insider trading activity is another way to break down the investments you’re interested in. There are a number of motivations for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if shareholders know what to do (learn more here).
Now, it’s important to take a peek at the key action encompassing Marsh & McLennan Companies, Inc. (NYSE:MMC).
What have hedge funds been doing with Marsh & McLennan Companies, Inc. (NYSE:MMC)?
In preparation for this quarter, a total of 24 of the hedge funds we track were bullish in this stock, a change of -4% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the largest position in Marsh & McLennan Companies, Inc. (NYSE:MMC). Renaissance Technologies has a $71.5 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by D. E. Shaw of D E Shaw, with a $58.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers that hold long positions include Phill Gross and Robert Atchinson’s Adage Capital Management, Charles de Vaulx’s International Value Advisers and Philippe Jabre’s Jabre Capital Partners.
Judging by the fact that Marsh & McLennan Companies, Inc. (NYSE:MMC) has faced declining sentiment from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of money managers who sold off their entire stakes in Q1. At the top of the heap, Andreas Halvorsen’s Viking Global dumped the biggest position of the “upper crust” of funds we key on, valued at an estimated $53.9 million in stock.. Matthew Tewksbury’s fund, Stevens Capital Management, also sold off its stock, about $3 million worth. These moves are interesting, as total hedge fund interest fell by 1 funds in Q1.
What do corporate executives and insiders think about Marsh & McLennan Companies, Inc. (NYSE:MMC)?
Insider buying is at its handiest when the company in question has experienced transactions within the past six months. Over the last half-year time frame, Marsh & McLennan Companies, Inc. (NYSE:MMC) has experienced 1 unique insiders buying, and 9 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Marsh & McLennan Companies, Inc. (NYSE:MMC). These stocks are Erie Indemnity Company (NASDAQ:ERIE), Brown & Brown, Inc. (NYSE:BRO), Arthur J. Gallagher & Co. (NYSE:AJG), Willis Group Holdings PLC (NYSE:WSH), and Aon PLC (NYSE:AON). This group of stocks belong to the insurance brokers industry and their market caps are similar to MMC’s market cap.