XL Group plc (NYSE:XL): Insiders Are Dumping, Should You?

XL Group plc (NYSE:XL) was in 23 hedge funds’ portfolio at the end of the fourth quarter of 2012. XL investors should be aware of a decrease in hedge fund interest recently. There were 26 hedge funds in our database with XL holdings at the end of the previous quarter.

XL Group plc (NYSE:XL)

To the average investor, there are tons of metrics shareholders can use to track their holdings. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce the market by a healthy amount (see just how much).

Equally as key, bullish insider trading sentiment is another way to break down the marketplace. Obviously, there are many motivations for an insider to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this method if investors know where to look (learn more here).

Now, let’s take a look at the key action regarding XL Group plc (NYSE:XL).

How are hedge funds trading XL Group plc (NYSE:XL)?

Heading into 2013, a total of 23 of the hedge funds we track held long positions in this stock, a change of -12% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially.

Judging by the fact that XL Group plc (NYSE:XL) has faced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedge funds that elected to cut their entire stakes heading into 2013. Interestingly, Ken Gray and Steve Walsh’s Bryn Mawr Capital dumped the biggest position of all the hedgies we track, worth close to $2 million in stock., and Cliff Asness of AQR Capital Management was right behind this move, as the fund sold off about $2 million worth. These transactions are interesting, as total hedge fund interest dropped by 3 funds heading into 2013.

How are insiders trading XL Group plc (NYSE:XL)?

Bullish insider trading is best served when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time period, XL Group plc (NYSE:XL) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s tactics, everyday investors should always monitor hedge fund and insider trading sentiment, and XL Group plc (NYSE:XL) is no exception.

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