In today’s marketplace, there are plenty of indicators shareholders can use to analyze stocks. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can trounce their index-focused peers by a significant margin (see just how much).
Just as key, optimistic insider trading sentiment is another way to look at the stock market universe. There are a variety of motivations for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would buy. Several academic studies have demonstrated the impressive potential of this tactic if investors know what to do (learn more here).
Now that that’s out of the way, let’s analyze the latest info about BGC Partners, Inc. (NASDAQ:BGCP).
How are hedge funds trading BGC Partners, Inc. (NASDAQ:BGCP)?
In preparation for the third quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 63% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.
When using filings from the hedgies we track, Amy Minella’s Cardinal Capital had the most valuable position in BGC Partners, Inc. (NASDAQ:BGCP), worth close to $11.1 million, accounting for 0.7% of its total 13F portfolio. Coming in second is Randall Smith of Alden Global Capital, with a $5.9 million position; 2% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include Jim Simons’s Renaissance Technologies, Glenn Russell Dubin’s Highbridge Capital Management and Robert Raiff’s Raiff Partners.
As industrywide interest increased, certain bigger names have been driving this bullishness. Oaktree Capital Management, managed by Howard Marks, initiated the most valuable position in BGC Partners, Inc. (NASDAQ:BGCP). Oaktree Capital Management had 19 million invested in the company at the end of the quarter. Amy Minella’s Cardinal Capital also made a $11.1 million investment in the stock during the quarter. The other funds with brand new BGCP positions are Randall Smith’s Alden Global Capital, Jim Simons’s Renaissance Technologies, and Glenn Russell Dubin’s Highbridge Capital Management.
How are insiders trading BGC Partners, Inc. (NASDAQ:BGCP)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, BGC Partners, Inc. (NASDAQ:BGCP) has experienced zero unique insiders buying, 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 BGC Partners, Inc. (NASDAQ:BGCP). These stocks are GFI Group Inc. (NYSE:GFIG), Medley Capital Corp (NYSE:MCC), FXCM Inc (NYSE:FXCM), Piper Jaffray Companies (NYSE:PJC), and Interactive Brokers Group, Inc. (NASDAQ:IBKR). All of these stocks are in the investment brokerage – national industry and their market caps are closest to BGCP’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| GFI Group Inc. (NYSE:GFIG) | 8 | 0 | 0 |
| Medley Capital Corp (NYSE:MCC) | 4 | 0 | 0 |
| FXCM Inc (NYSE:FXCM) | 10 | 0 | 0 |
| Piper Jaffray Companies (NYSE:PJC) | 12 | 0 | 0 |
| Interactive Brokers Group, Inc. (NASDAQ:IBKR) | 13 | 0 | 0 |
Using the results explained by the previously mentioned studies, regular investors should always keep one eye on hedge fund and insider trading sentiment, and BGC Partners, Inc. (NASDAQ:BGCP) applies perfectly to this mantra.
