Is Evercore Partners Inc. (NYSE:EVR) the right pick for your portfolio? The smart money is in an optimistic mood. The number of bullish hedge fund positions went up by 1 recently.
In today’s marketplace, there are many methods investors can use to track publicly traded companies. Two of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can outperform the market by a healthy margin (see just how much).
Just as important, positive insider trading activity is a second way to break down the financial markets. As the old adage goes: there are a variety of reasons for a corporate insider to cut 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 strategy if “monkeys” understand what to do (learn more here).
Now, let’s take a look at the latest action surrounding Evercore Partners Inc. (NYSE:EVR).
How are hedge funds trading Evercore Partners Inc. (NYSE:EVR)?
In preparation for this year, a total of 8 of the hedge funds we track held long positions in this stock, a change of 14% from the third quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Evercore Partners Inc. (NYSE:EVR). Citadel Investment Group has a $56 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Andrew Sandler of Sandler Capital Management, with a $11 million position; 0.6% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Chuck Royce’s Royce & Associates, Israel Englander’s Millennium Management and Steven Cohen’s SAC Capital Advisors.
As one would reasonably expect, key hedge funds were breaking ground themselves. Sandler Capital Management, managed by Andrew Sandler, assembled the most outsized position in Evercore Partners Inc. (NYSE:EVR). Sandler Capital Management had 11 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a less than $1 million investment in the stock during the quarter. The only other fund with a brand new EVR position is David Costen Haley’s HBK Investments.
What have insiders been doing with Evercore Partners Inc. (NYSE:EVR)?
Insider buying is particularly usable when the company in question has seen transactions within the past six months. Over the last half-year time frame, Evercore Partners Inc. (NYSE:EVR) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Evercore Partners Inc. (NYSE:EVR). These stocks are Financial Engines Inc (NASDAQ:FNGN), Cohen & Steers, Inc. (NYSE:CNS), Virtus Investment Partners Inc (NASDAQ:VRTS), Gamco Investors Inc. (NYSE:GBL), and WisdomTree Investments, Inc. (NASDAQ:WETF). All of these stocks are in the asset management industry and their market caps match EVR’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Financial Engines Inc (NASDAQ:FNGN)||5||0||12|
|Cohen & Steers, Inc. (NYSE:CNS)||5||0||2|
|Virtus Investment Partners Inc (NASDAQ:VRTS)||7||0||5|
|Gamco Investors Inc. (NYSE:GBL)||6||1||1|
|WisdomTree Investments, Inc. (NASDAQ:WETF)||9||0||10|
With the returns demonstrated by Insider Monkey’s time-tested strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Evercore Partners Inc. (NYSE:EVR) is no exception.