FXCM Inc (FXCM): Are Hedge Funds Right About This Stock?

FXCM Inc (NYSE:FXCM) was in 8 hedge funds’ portfolio at the end of the first quarter of 2013. FXCM investors should be aware of an increase in hedge fund interest recently. There were 6 hedge funds in our database with FXCM positions at the end of the previous quarter.

In the financial world, there are many metrics market participants can use to watch publicly traded companies. Some 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 top investment managers can outclass the S&P 500 by a significant amount (see just how much).

Equally as important, bullish insider trading activity is a second way to parse down the financial markets. There are lots of incentives for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the impressive potential of this tactic if you understand where to look (learn more here).

Now, it’s important to take a gander at the latest action encompassing FXCM Inc (NYSE:FXCM).

Hedge fund activity in FXCM Inc (NYSE:FXCM)

At Q1’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 33% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings meaningfully.

According to our comprehensive database, Michael Price’s MFP Investors had the most valuable position in FXCM Inc (NYSE:FXCM), worth close to $29.5 million, accounting for 3.9% of its total 13F portfolio. Coming in second is Ken Griffin of Citadel Investment Group, with a $13.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Richard S. Meisenberg’s ACK Asset Management, Israel Englander’s Millennium Management and Mike Vranos’s Ellington.

As industrywide interest jumped, key money managers were breaking ground themselves. ACK Asset Management, managed by Richard S. Meisenberg, initiated the most valuable position in FXCM Inc (NYSE:FXCM). ACK Asset Management had 4.9 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $0.3 million position during the quarter.

How are insiders trading FXCM Inc (NYSE:FXCM)?

Bullish insider trading is particularly usable when the company in question has seen transactions within the past half-year. Over the latest six-month time frame, FXCM Inc (NYSE:FXCM) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to FXCM Inc (NYSE:FXCM). These stocks are Interactive Brokers Group, Inc. (NASDAQ:IBKR), BGC Partners, Inc. (NASDAQ:BGCP), GFI Group Inc. (NYSE:GFIG), Piper Jaffray Companies (NYSE:PJC), and Medley Capital Corp (NYSE:MCC). This group of stocks belong to the investment brokerage – national industry and their market caps match FXCM’s market cap.