In the financial world, there are plenty of metrics shareholders can use to monitor publicly traded companies. Some of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the S&P 500 by a very impressive margin (see just how much).
Equally as key, optimistic insider trading sentiment is another way to parse down the stock market universe. As the old adage goes: there are a variety of incentives for an insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this method if shareholders know what to do (learn more here).
Consequently, we’re going to take a look at the recent action regarding Acacia Research Corporation (NASDAQ:ACTG).
What does the smart money think about Acacia Research Corporation (NASDAQ:ACTG)?
At the end of the fourth quarter, a total of 18 of the hedge funds we track were bullish in this stock, a change of 38% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies we track, Soros Fund Management, managed by George Soros, holds the largest position in Acacia Research Corporation (NASDAQ:ACTG). Soros Fund Management has a $102 million position in the stock, comprising 1.2% of its 13F portfolio. Sitting at the No. 2 spot is Malcolm Fairbairn of Ascend Capital, with a $30 million position; 3.5% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include Jay Petschek and Steven Major’s Corsair Capital Management, Bill Miller’s Legg Mason Capital Management and Jim Simons’s Renaissance Technologies.
As one would reasonably expect, key hedge funds have jumped into Acacia Research Corporation (NASDAQ:ACTG) headfirst. Corsair Capital Management, managed by Jay Petschek and Steven Major, created the most valuable position in Acacia Research Corporation (NASDAQ:ACTG). Corsair Capital Management had 21 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $7 million investment in the stock during the quarter. The other funds with brand new ACTG positions are John Murphy’s Alydar Capital, Glenn Russell Dubin’s Highbridge Capital Management, and Israel Englander’s Millennium Management.
What have insiders been doing with Acacia Research Corporation (NASDAQ:ACTG)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has seen transactions within the past 180 days. Over the latest six-month time period, Acacia Research Corporation (NASDAQ:ACTG) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
With the returns shown by the aforementioned time-tested strategies, everyday investors must always monitor hedge fund and insider trading sentiment, and Acacia Research Corporation (NASDAQ:ACTG) is no exception.
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