Annaly Capital Management, Inc. (NYSE:NLY) investors should be aware of an increase in hedge fund interest in recent months.
In the financial world, there are plenty of indicators investors can use to watch publicly traded companies. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat the market by a superb amount (see just how much).
Equally as important, positive insider trading activity is another way to parse down the investments you’re interested in. Obviously, there are many stimuli for an insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this strategy if shareholders know what to do (learn more here).
Keeping this in mind, it’s important to take a peek at the recent action encompassing Annaly Capital Management, Inc. (NYSE:NLY).
What have hedge funds been doing with Annaly Capital Management, Inc. (NYSE:NLY)?
At year’s end, a total of 24 of the hedge funds we track were bullish in this stock, a change of 4% from the third quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully.
When looking at the hedgies we track, Pine River Capital Management, managed by Brian Taylor, holds the biggest position in Annaly Capital Management, Inc. (NYSE:NLY). Pine River Capital Management has a $337 million position in the stock, comprising 6.5% of its 13F portfolio. Sitting at the No. 2 spot is Michael Lowenstein of Kensico Capital, with a $64 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Charles Akre’s Akre Capital Management and Charles de Vaulx’s International Value Advisers.
As one would reasonably expect, some big names were leading the bulls’ herd. Pine River Capital Management, managed by Brian Taylor, assembled the largest position in Annaly Capital Management, Inc. (NYSE:NLY). Pine River Capital Management had 337 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also initiated a $58 million position during the quarter. The other funds with new positions in the stock are Louis Bacon’s Moore Global Investments, Boaz Weinstein’s Saba Capital, and David Costen Haley’s HBK Investments.
How are insiders trading Annaly Capital Management, Inc. (NYSE:NLY)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past half-year. Over the last 180-day time frame, Annaly Capital Management, Inc. (NYSE:NLY) has seen 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results shown by Insider Monkey’s studies, retail investors should always pay attention to hedge fund and insider trading sentiment, and Annaly Capital Management, Inc. (NYSE:NLY) applies perfectly to this mantra.
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