Iconix Brand Group Inc (NASDAQ:ICON) was in 8 hedge funds’ portfolio at the end of December. ICON investors should pay attention to a decrease in support from the world’s most elite money managers in recent months. There were 10 hedge funds in our database with ICON positions at the end of the previous quarter.
To most market participants, hedge funds are perceived as unimportant, old investment tools of years past. While there are greater than 8000 funds trading at the moment, we hone in on the moguls of this club, around 450 funds. Most estimates calculate that this group oversees most of the smart money’s total capital, and by tracking their best equity investments, we have figured out a few investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy outperformed 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 25 percentage points in 6.5 month (check out a sample of our picks).
Just as important, positive insider trading activity is a second way to parse down the financial markets. Obviously, there are lots of motivations for an executive to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this method if shareholders know what to do (learn more here).
Keeping this in mind, let’s take a look at the latest action regarding Iconix Brand Group Inc (NASDAQ:ICON).
How are hedge funds trading Iconix Brand Group Inc (NASDAQ:ICON)?
In preparation for this year, a total of 8 of the hedge funds we track held long positions in this stock, a change of -20% from the third quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Wallace Weitz’s Wallace R. Weitz & Co. had the largest position in Iconix Brand Group Inc (NASDAQ:ICON), worth close to $73 million, accounting for 3.2% of its total 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $2 million position; the fund has 0% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Brian Taylor’s Pine River Capital Management, Zeke Ashton’s Centaur Capital Partners and Whitney Tilson’s T2 Partners.
Because Iconix Brand Group Inc (NASDAQ:ICON) has witnessed a declination in interest from hedge fund managers, it’s easy to see that there exists a select few money managers who sold off their positions entirely in Q4. Intriguingly, Mark Travis’s Intrepid Capital Management dumped the largest position of all the hedgies we track, worth close to $17 million in stock., and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund said goodbye to about $0 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 2 funds in Q4.
How are insiders trading Iconix Brand Group Inc (NASDAQ:ICON)?
Insider buying is best served when the primary stock in question has seen transactions within the past six months. Over the last half-year time frame, Iconix Brand Group Inc (NASDAQ:ICON) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
With the returns exhibited by the aforementioned research, retail investors should always watch hedge fund and insider trading sentiment, and Iconix Brand Group Inc (NASDAQ:ICON) applies perfectly to this mantra.
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.