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This Metric Says You Are Smart to Sell Gray Television, Inc. (GTN), Nexstar Broadcasting Group, Inc. (NXST), Fisher Communications, Inc. (FSCI)

Gray Television, Inc. (NYSE:GTN) was in 10 hedge funds’ portfolio at the end of December. GTN investors should pay attention to a decrease in hedge fund sentiment lately. There were 11 hedge funds in our database with GTN holdings at the end of the previous quarter.

02 Jamie Zimmerman

At the moment, there are many gauges market participants can use to monitor their holdings. Two of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can outperform their index-focused peers by a significant amount (see just how much).

Just as beneficial, bullish insider trading sentiment is another way to break down the investments you’re interested in. Just as you’d expect, there are lots of stimuli for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).

With all of this in mind, we’re going to take a gander at the recent action surrounding Gray Television, Inc. (NYSE:GTN).

Hedge fund activity in Gray Television, Inc. (NYSE:GTN)

At the end of the fourth quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of -9% from the third quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.

Of the funds we track, Litespeed Management, managed by Jamie Zimmerman, holds the most valuable position in Gray Television, Inc. (NYSE:GTN). Litespeed Management has a $9 million position in the stock, comprising 3.2% of its 13F portfolio. Coming in second is GAMCO Investors, managed by Mario Gabelli, which held a $2 million position; 0% of its 13F portfolio is allocated to the company. Other peers that are bullish include Edward A. Mule’s Silver Point Capital, Thomas E. Claugus’s GMT Capital and Abby Flamholz and Yehuda Blinder’s ADAR Investment Management.

Judging by the fact that Gray Television, Inc. (NYSE:GTN) has experienced falling interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of money managers that slashed their entire stakes in Q4. Interestingly, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners cut the largest position of the “upper crust” of funds we watch, valued at close to $0 million in stock.. Richard Driehaus’s fund, Driehaus Capital, also sold off its stock, about $0 million worth. These transactions are interesting, as total hedge fund interest was cut by 1 funds in Q4.

Insider trading activity in Gray Television, Inc. (NYSE:GTN)

Insider purchases made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, Gray Television, Inc. (NYSE:GTN) has experienced zero unique insiders purchasing, and 3 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 Gray Television, Inc. (NYSE:GTN). These stocks are Nexstar Broadcasting Group, Inc. (NASDAQ:NXST), Fisher Communications, Inc. (NASDAQ:FSCI), Central European Media Enterprises Ltd. (NASDAQ:CETV), Outdoor Channel Holdings, Inc. (NASDAQ:OUTD), and Entravision Communication (NYSE:EVC). This group of stocks are in the broadcasting – tv industry and their market caps match GTN’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) 14 0 6
Fisher Communications, Inc. (NASDAQ:FSCI) 6 3 1
Central European Media Enterprises Ltd. (NASDAQ:CETV) 6 0 0
Outdoor Channel Holdings, Inc. (NASDAQ:OUTD) 4 0 0
Entravision Communication (NYSE:EVC) 5 0 4

With the returns demonstrated by our tactics, retail investors should always watch hedge fund and insider trading activity, and Gray Television, Inc. (NYSE:GTN) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

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