Now, according to many traders, hedge funds are assumed to be bloated, old financial vehicles of a forgotten age. Although there are over 8,000 hedge funds in operation in present day, Insider Monkey looks at the crème de la crème of this group, about 525 funds. It is widely held that this group oversees the lion’s share of the hedge fund industry’s total capital, and by tracking their highest performing stock picks, we’ve discovered a number of investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum 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 33 percentage points in 11 months (find the details here).
Just as useful, optimistic insider trading activity is a second way to look at the financial markets. As the old adage goes: there are plenty of motivations for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this tactic if piggybackers understand what to do (learn more here).
Now that that’s out of the way, it’s important to discuss the recent info about Teledyne Technologies Incorporated (NYSE:TDY).
Hedge fund activity in Teledyne Technologies Incorporated (NYSE:TDY)
At Q2’s end, a total of 14 of the hedge funds we track were bullish in this stock, a change of 40% from the first quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably.
When using filings from the hedgies we track, Steven Richman’s East Side Capital (RR Partners) had the largest position in Teledyne Technologies Incorporated (NYSE:TDY), worth close to $82 million, accounting for 4% of its total 13F portfolio. Sitting at the No. 2 spot is Harris Associates, managed by Natixis Global Asset Management, which held a $74 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include Amy Minella’s Cardinal Capital, Ken Fisher’s Fisher Asset Management and Chuck Royce’s Royce & Associates.
Now, particular hedge funds have been driving this bullishness. East Side Capital (RR Partners), managed by Steven Richman, initiated the most outsized position in Teledyne Technologies Incorporated (NYSE:TDY). East Side Capital (RR Partners) had 82 million invested in the company at the end of the quarter. Amy Minella’s Cardinal Capital also made a $54.2 million investment in the stock during the quarter. The other funds with brand new TDY positions are Ken Fisher’s Fisher Asset Management, Chuck Royce’s Royce & Associates, and Jim Simons’s Renaissance Technologies.
Insider trading activity in Teledyne Technologies Incorporated (NYSE:TDY)
Insider buying is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Teledyne Technologies Incorporated (NYSE:TDY) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Teledyne Technologies Incorporated (NYSE:TDY). These stocks are Alliant Techsystems Inc. (NYSE:ATK), CAE, Inc. (USA) (NYSE:CAE), Huntington Ingalls Industries Inc (NYSE:HII), Spirit AeroSystems Holdings, Inc. (NYSE:SPR), and Hexcel Corporation (NYSE:HXL). All of these stocks are in the aerospace/defense products & services industry and their market caps are closest to TDY’s market cap.