Brookdale Senior Living, Inc. (NYSE:BKD) investors should pay attention to an increase in enthusiasm from smart money recently.
In the financial world, there are tons of gauges market participants can use to track stocks. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can outclass the broader indices by a healthy amount (see just how much).
Equally as important, optimistic insider trading sentiment is a second way to parse down the world of equities. Obviously, there are many stimuli for a corporate insider to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).
Consequently, let’s take a glance at the recent action surrounding Brookdale Senior Living, Inc. (NYSE:BKD).
Hedge fund activity in Brookdale Senior Living, Inc. (NYSE:BKD)
At year’s end, a total of 34 of the hedge funds we track were bullish in this stock, a change of 21% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Fortress Investment Group, managed by Michael Novogratz, holds the largest position in Brookdale Senior Living, Inc. (NYSE:BKD). Fortress Investment Group has a $445 million position in the stock, comprising 13.4% of its 13F portfolio. Coming in second is OZ Management, managed by Daniel S. Och, which held a $65 million position; 8.1% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include James Dinan’s York Capital Management, John Bader’s Halcyon Asset Management and Israel Englander’s Millennium Management.
As one would reasonably expect, some big names were breaking ground themselves. Halcyon Asset Management, managed by John Bader, established the most valuable position in Brookdale Senior Living, Inc. (NYSE:BKD). Halcyon Asset Management had 35 million invested in the company at the end of the quarter. Thomas Ellis and Todd Hammer’s North Run Capital also made a $8 million investment in the stock during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Jim Simons’s Renaissance Technologies, and Curtis Schenker and Craig Effron’s Scoggin.
What have insiders been doing with Brookdale Senior Living, Inc. (NYSE:BKD)?
Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time period, Brookdale Senior Living, Inc. (NYSE:BKD) has experienced zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).
With the results exhibited by our tactics, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Brookdale Senior Living, Inc. (NYSE:BKD) 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.