Investment Technology Group (ITG): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Investment Technology Group (NYSE:ITG) was in 14 hedge funds’ portfolio at the end of March. ITG has experienced an increase in support from the world’s most elite money managers lately. There were 13 hedge funds in our database with ITG holdings at the end of the previous quarter.

In the financial world, there are dozens of methods shareholders can use to monitor their holdings. A pair of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can beat the broader indices by a solid amount (see just how much).

Investment Technology Group (ITG)

Equally as beneficial, bullish insider trading activity is another way to parse down the world of equities. As the old adage goes: there are lots of stimuli for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if investors understand where to look (learn more here).

Consequently, let’s take a peek at the latest action encompassing Investment Technology Group (NYSE:ITG).

How have hedgies been trading Investment Technology Group (NYSE:ITG)?

In preparation for this quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of 8% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.

When looking at the hedgies we track, Dmitry Balyasny’s Balyasny Asset Management had the most valuable position in Investment Technology Group (NYSE:ITG), worth close to $12.1 million, accounting for 0.2% of its total 13F portfolio. The second largest stake is held by Martin Whitman of Third Avenue Management, with a $11.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Anil Stevens and Glenn Shapiro’s Parameter Capital Management and Jim Simons’s Renaissance Technologies.

As aggregate interest increased, key hedge funds have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, created the most outsized position in Investment Technology Group (NYSE:ITG). Balyasny Asset Management had 12.1 million invested in the company at the end of the quarter. Israel Englander’s Catapult Capital Management also initiated a $1 million position during the quarter. The other funds with brand new ITG positions are Glenn Russell Dubin’s Highbridge Capital Management and D. E. Shaw’s D E Shaw.

How are insiders trading Investment Technology Group (NYSE:ITG)?

Insider purchases made by high-level executives is at its handiest when the company in focus has seen transactions within the past six months. Over the last 180-day time frame, Investment Technology Group (NYSE:ITG) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Investment Technology Group (NYSE:ITG). These stocks are Greenhill & Co., Inc. (NYSE:GHL), Palmetto Bancshares Inc (NASDAQ:PLMT), SWS Group, Inc. (NYSE:SWS), Oppenheimer Holdings Inc. (USA) (NYSE:OPY), and Knight Capital Group Inc. (NYSE:KCG). This group of stocks are the members of the investment brokerage – regional industry and their market caps are similar to ITG’s market cap.