To many market players, hedge funds are seen as useless, outdated financial vehicles of an era lost to time. Although there are In excess of 8,000 hedge funds with their doors open currently, Insider Monkey aim at the upper echelon of this club, about 525 funds. It is widely held that this group oversees most of the smart money’s total assets, and by monitoring their highest quality equity investments, we’ve spotted a number of investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as key, bullish insider trading activity is a second way to analyze the investments you’re interested in. There are a variety of stimuli for an insider to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this tactic if investors know where to look (learn more here).
What’s more, let’s study the recent info about The New York Times Company (NYSE:NYT).
What have hedge funds been doing with The New York Times Company (NYSE:NYT)?
At Q2’s end, a total of 23 of the hedge funds we track were long in this stock, a change of 44% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly.
According to our 13F database, JHL Capital Group, managed by James H. Litinsky, holds the biggest position in The New York Times Company (NYSE:NYT). JHL Capital Group has a $108.4 million position in the stock, comprising 16.9% of its 13F portfolio. Coming in second is Irving Kahn of Kahn Brothers, with a $59.6 million position; the fund has 9.2% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Chuck Royce’s Royce & Associates, Ken Griffin’s Citadel Investment Group and Jorge Paulo Lemann’s 3G Capital.
Consequently, certain bigger names were breaking ground themselves. JHL Capital Group, managed by James H. Litinsky, established the most outsized position in The New York Times Company (NYSE:NYT). JHL Capital Group had 108.4 million invested in the company at the end of the quarter. Irving Kahn’s Kahn Brothers also initiated a $59.6 million position during the quarter. The other funds with brand new NYT positions are Chuck Royce’s Royce & Associates, Ken Griffin’s Citadel Investment Group, and Jorge Paulo Lemann’s 3G Capital.
What have insiders been doing with The New York Times Company (NYSE:NYT)?
Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the latest six-month time frame, The New York Times Company (NYSE:NYT) 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 The New York Times Company (NYSE:NYT). These stocks are Media General, Inc. (NYSE:MEG), The McClatchy Company (NYSE:MNI), Journal Communications, Inc. (NYSE:JRN), Gannett Co., Inc. (NYSE:GCI), and The E.W. Scripps Company (NYSE:SSP). This group of stocks are the members of the publishing – newspapers industry and their market caps are similar to NYT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Media General, Inc. (NYSE:MEG)||9||0||0|
|The McClatchy Company (NYSE:MNI)||10||0||0|
|Journal Communications, Inc. (NYSE:JRN)||15||0||0|
|Gannett Co., Inc. (NYSE:GCI)||22||0||0|
|The E.W. Scripps Company (NYSE:SSP)||14||0||0|
Using the returns shown by Insider Monkey’s analyses, average investors must always track hedge fund and insider trading sentiment, and The New York Times Company (NYSE:NYT) is no exception.