The Blackstone Group L.P. (NYSE:BX) is a stalwart in the equity portfolios of many investors, but it’s worth analyzing what the stock’s richest shareholders have been doing of late.
At the moment, there are many gauges market participants can use to monitor the equity markets. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outpace the S&P 500 by a solid margin (see just how much).
Just as necessary, positive insider trading sentiment is a second way to analyze the investments you’re interested in. As the old adage goes: there are a variety of motivations for an insider to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).
Furthermore, it’s important to examine the newest info surrounding The Blackstone Group L.P. (NYSE:BX).
How have hedgies been trading The Blackstone Group L.P. (NYSE:BX)?
At Q2’s end, a total of 31 of the hedge funds we track held long positions in this stock, a change of 3% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably.
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As aggregate interest spiked, specific money managers were breaking ground themselves. Select Equity Group, managed by Robert Joseph Caruso, assembled the biggest call position in The Blackstone Group L.P. (NYSE:BX). Select Equity Group had 101.6 million invested in the company at the end of the quarter. John W. Rogers’s Ariel Investments also initiated a $57.2 million position during the quarter. The other funds with new positions in the stock are Robert Joseph Caruso’s Select Equity Group, Jim Simons’s Renaissance Technologies, and Thomas E. Claugus’s GMT Capital.
How have insiders been trading The Blackstone Group L.P. (NYSE:BX)?
Insider buying is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time period, The Blackstone Group L.P. (NYSE:BX) 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 Blackstone Group L.P. (NYSE:BX). These stocks are Ameriprise Financial, Inc. (NYSE:AMP), The Bank of New York Mellon Corporation (NYSE:BK), Franklin Resources, Inc. (NYSE:BEN), State Street Corporation (NYSE:STT), and T. Rowe Price Group, Inc. (NASDAQ:TROW). This group of stocks are in the asset management industry and their market caps are closest to BX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Ameriprise Financial, Inc. (NYSE:AMP) | 23 | 0 | 0 |
| The Bank of New York Mellon Corporation (NYSE:BK) | 39 | 0 | 0 |
| Franklin Resources, Inc. (NYSE:BEN) | 39 | 0 | 0 |
| State Street Corporation (NYSE:STT) | 32 | 0 | 0 |
| T. Rowe Price Group, Inc. (NASDAQ:TROW) | 29 | 0 | 0 |
Using the returns demonstrated by our analyses, regular investors must always track hedge fund and insider trading activity, and The Blackstone Group L.P. (NYSE:BX) applies perfectly to this mantra.
