Endurance Specialty Holdings Ltd. (ENH): Hedge Funds Are Bearish and Insiders Are Undecided, What Should You Do?

Should Endurance Specialty Holdings Ltd. (NYSE:ENH) investors track the following data?

In the financial world, there are many metrics investors can use to watch stocks. A pair 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 best picks of the best money managers can trounce their index-focused peers by a healthy margin (see just how much).

Just as useful, positive insider trading activity is another way to analyze the stock market universe. There are lots of reasons for an insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the useful potential of this tactic if you know where to look (learn more here).

Furthermore, let’s analyze the newest info about Endurance Specialty Holdings Ltd. (NYSE:ENH).

How are hedge funds trading Endurance Specialty Holdings Ltd. (NYSE:ENH)?

In preparation for the third quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of -17% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.

When using filings from the hedgies we track, David Dreman’s Dreman Value Management had the largest position in Endurance Specialty Holdings Ltd. (NYSE:ENH), worth close to $24 million, comprising 0.7% of its total 13F portfolio. On Dreman Value Management’s heels is Diamond Hill Capital, managed by Ric Dillon, which held a $23.9 million position; 0.3% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Bruce Silver’s Silver Capital Management LLC and Ken Griffin’s Citadel Investment Group.

As Endurance Specialty Holdings Ltd. (NYSE:ENH) has faced dropping sentiment from the top-tier hedge fund industry, it’s easy to see that there was a specific group of hedgies who sold off their full holdings in Q1. It’s worth mentioning that Brian Taylor’s Pine River Capital Management cut the biggest position of the “upper crust” of funds we key on, worth about $8.1 million in stock, and Israel Englander of Millennium Management was right behind this move, as the fund said goodbye to about $7.1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 2 funds in Q1.

How have insiders been trading Endurance Specialty Holdings Ltd. (NYSE:ENH)?

Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time period, Endurance Specialty Holdings Ltd. (NYSE:ENH) has seen 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 Endurance Specialty Holdings Ltd. (NYSE:ENH). These stocks are Kemper Corporation (NYSE:KMPR), The Hanover Insurance Group, Inc. (NYSE:THG), MBIA Inc. (NYSE:MBI), Mercury General Corporation (NYSE:MCY), and Enstar Group Ltd. (NASDAQ:ESGR). All of these stocks are in the property & casualty insurance industry and their market caps are similar to ENH’s market cap.