Is SHFL entertainment Inc (SHFL) Going to Burn These Hedge Funds?

SHFL entertainment Inc (NASDAQ:SHFL) was in 11 hedge funds’ portfolio at the end of December. SHFL has experienced an increase in hedge fund interest in recent months. There were 9 hedge funds in our database with SHFL holdings at the end of the previous quarter.

In the financial world, there are tons of methods investors can use to track Mr. Market. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can outclass the market by a superb amount (see just how much).

Equally as important, positive insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are many stimuli for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the valuable potential of this method if shareholders know where to look (learn more here).

Consequently, it’s important to take a look at the recent action surrounding SHFL entertainment Inc (NASDAQ:SHFL).

Hedge fund activity in SHFL entertainment Inc (NASDAQ:SHFL)

Heading into 2013, a total of 11 of the hedge funds we track held long positions in this stock, a change of 22% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.

When looking at the hedgies we track, Roberto Mignone’s Bridger Management had the biggest position in SHFL entertainment Inc (NASDAQ:SHFL), worth close to $39.9 million, comprising 2.8% of its total 13F portfolio. On Bridger Management’s heels is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $6.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Ken Fisher’s Fisher Asset Management, Israel Englander’s Millennium Management and Jim Simons’s Renaissance Technologies.

With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Bridger Management, managed by Roberto Mignone, initiated the most outsized position in SHFL entertainment Inc (NASDAQ:SHFL). Bridger Management had 39.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $6.6 million investment in the stock during the quarter. The following funds were also among the new SHFL investors: Ken Fisher’s Fisher Asset Management, Israel Englander’s Millennium Management, and Jim Simons’s Renaissance Technologies.

What have insiders been doing with SHFL entertainment Inc (NASDAQ:SHFL)?

Bullish insider trading is most useful when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time period, SHFL entertainment Inc (NASDAQ:SHFL) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to SHFL entertainment Inc (NASDAQ:SHFL). These stocks are A.T. Cross Company (NASDAQ:ATX), Brunswick Corporation (NYSE:BC), Steinway Musical Instruments Inc (NYSE:LVB), Manchester United PLC (NYSE:MANU), and Movado Group, Inc (NYSE:MOV). This group of stocks are in the recreational goods, other industry and their market caps resemble SHFL’s market cap.