MGM Resorts International (NYSE:MGM) was in 29 hedge funds’ portfolio at the end of December. MGM has seen an increase in enthusiasm from smart money in recent months. There were 26 hedge funds in our database with MGM positions at the end of the previous quarter.
To the average investor, there are dozens of indicators investors can use to track Mr. Market. Some of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outpace their index-focused peers by a significant margin (see just how much).
Equally as key, positive insider trading sentiment is another way to break down the financial markets. Obviously, there are lots of incentives for an insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this tactic if investors understand where to look (learn more here).
With these “truths” under our belt, let’s take a glance at the latest action encompassing MGM Resorts International (NYSE:MGM).
What does the smart money think about MGM Resorts International (NYSE:MGM)?
In preparation for this year, a total of 29 of the hedge funds we track were long in this stock, a change of 12% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, John Paulson’s Paulson & Co had the largest position in MGM Resorts International (NYSE:MGM), worth close to $438 million billion, comprising 2.7% of its total 13F portfolio. Sitting at the No. 2 spot is David Tepper of Appaloosa Management LP, with a $80 million position; 1.9% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Richard Perry’s Perry Capital, Brian J. Higgins’s King Street Capital and Ken Griffin’s Citadel Investment Group.
As aggregate interest increased, key money managers were breaking ground themselves. Perry Capital, managed by Richard Perry, initiated the largest position in MGM Resorts International (NYSE:MGM). Perry Capital had 52 million invested in the company at the end of the quarter. Brian J. Higgins’s King Street Capital also made a $47 million investment in the stock during the quarter. The following funds were also among the new MGM investors: Dmitry Balyasny’s Balyasny Asset Management, Bruce J. Richards and Louis Hanover’s Marathon Asset Management, and Steven Tananbaum’s GoldenTree Asset Management.
What do corporate executives and insiders think about MGM Resorts International (NYSE:MGM)?
Bullish insider trading is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the last half-year time period, MGM Resorts International (NYSE:MGM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns exhibited by our research, everyday investors should always monitor hedge fund and insider trading activity, and MGM Resorts International (NYSE:MGM) is no exception.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.