Is Fortress Investment Group LLC (NYSE:FIG) a buy?
In the financial world, there are many methods investors can use to track Mr. Market. A couple of the most under-the-radar 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 top investment managers can trounce the broader indices by a solid amount (see just how much).
Equally as useful, positive insider trading sentiment is another way to look at the investments you’re interested in. Just as you’d expect, there are plenty of stimuli for an executive to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this tactic if investors know where to look (learn more here).
Furthermore, we’re going to discuss the latest info about Fortress Investment Group LLC (NYSE:FIG).
What have hedge funds been doing with Fortress Investment Group LLC (NYSE:FIG)?
In preparation for the third quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of 38% from the first quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, Ric Dillon’s Diamond Hill Capital had the biggest position in Fortress Investment Group LLC (NYSE:FIG), worth close to $16.8 million, accounting for 0.2% of its total 13F portfolio. The second largest stake is held by Bill Miller of Legg Mason Capital Management, with a $12 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Jim Simons’s Renaissance Technologies, Robert Joseph Caruso’s Select Equity Group and Nathaniel August’s Mangrove Partners.
As industrywide interest increased, certain bigger names were breaking ground themselves. Diamond Hill Capital, managed by Ric Dillon, assembled the most outsized position in Fortress Investment Group LLC (NYSE:FIG). Diamond Hill Capital had 16.8 million invested in the company at the end of the quarter. Bill Miller’s Legg Mason Capital Management also made a $12 million investment in the stock during the quarter. The following funds were also among the new FIG investors: Jim Simons’s Renaissance Technologies, Robert Joseph Caruso’s Select Equity Group, and Nathaniel August’s Mangrove Partners.
What have insiders been doing with Fortress Investment Group LLC (NYSE:FIG)?
Insider buying is most useful when the company in question has experienced transactions within the past 180 days. Over the last 180-day time period, Fortress Investment Group LLC (NYSE:FIG) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Fortress Investment Group LLC (NYSE:FIG). These stocks are Och-Ziff Capital Management Group LLC (NYSE:OZM), KKR & Co. L.P. (NYSE:KKR), AllianceBernstein Holding LP (NYSE:AB), Waddell & Reed Financial, Inc. (NYSE:WDR), and Federated Investors Inc (NYSE:FII). All of these stocks are in the asset management industry and their market caps are closest to FIG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Och-Ziff Capital Management Group LLC (NYSE:OZM) | 12 | 0 | 0 |
| KKR & Co. L.P. (NYSE:KKR) | 25 | 0 | 0 |
| AllianceBernstein Holding LP (NYSE:AB) | 9 | 0 | 0 |
| Waddell & Reed Financial, Inc. (NYSE:WDR) | 18 | 0 | 0 |
| Federated Investors Inc (NYSE:FII) | 16 | 0 | 0 |
Using the results demonstrated by Insider Monkey’s strategies, average investors should always track hedge fund and insider trading sentiment, and Fortress Investment Group LLC (NYSE:FIG) is no exception.
