Here is What Hedge Funds Think About Regal Entertainment Group (RGC)

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What’s a smart Regal Entertainment Group (NYSE:RGC) investor to do?

In the eyes of many traders, hedge funds are seen as delayed, old financial vehicles of a forgotten age. Although there are more than 8,000 hedge funds in operation currently, Insider Monkey looks at the masters of this group, close to 525 funds. Analysts calculate that this group oversees most of the hedge fund industry’s total assets, and by monitoring their highest quality stock picks, we’ve identified a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).

Equally as key, bullish insider trading activity is a second way to look at the marketplace. There are plenty of stimuli for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this method if “monkeys” know where to look (learn more here).

Regal Entertainment Group (NYSE:RGC)

Furthermore, we’re going to analyze the newest info about Regal Entertainment Group (NYSE:RGC).

How are hedge funds trading Regal Entertainment Group (NYSE:RGC)?

At the end of the second quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 18% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes significantly.

When using filings from the hedgies we track, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the largest position in Regal Entertainment Group (NYSE:RGC). Arrowstreet Capital has a $20 million position in the stock, comprising 0.1% of its 13F portfolio. On Arrowstreet Capital’s heels is Polaris Capital Management, managed by Bernard Horn, which held a $13.7 million position; 0.8% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Richard Driehaus’s Driehaus Capital, and Jim Simons’s Renaissance Technologies.

Consequently, particular hedge funds have jumped into Regal Entertainment Group (NYSE:RGC) headfirst. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the most valuable position in Regal Entertainment Group (NYSE:RGC). Arrowstreet Capital had 20 million invested in the company at the end of the quarter. Bernard Horn’s Polaris Capital Management also made a $13.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Richard Driehaus’s Driehaus Capital, John Fichthorn’s Dialectic Capital Management, and Jim Simons’s Renaissance Technologies.

What do corporate executives and insiders think about Regal Entertainment Group (NYSE:RGC)?

Insider buying is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time frame, Regal Entertainment Group (NYSE:RGC) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Regal Entertainment Group (NYSE:RGC). These stocks are Carmike Cinemas, Inc. (NASDAQ:CKEC), RealD (NYSE:RLD), Dreamworks Animation Skg Inc (NASDAQ:DWA), Cinemark Holdings, Inc. (NYSE:CNK), and Lions Gate Entertainment Corp. (USA) (NYSE:LGF). All of these stocks are in the movie production, theaters industry and their market caps are closest to RGC’s market cap.

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