Enstar Group Ltd. (NASDAQ:ESGR) was in 8 hedge funds’ portfolio at the end of the first quarter of 2013. ESGR has experienced an increase in support from the world’s most elite money managers lately. There were 6 hedge funds in our database with ESGR positions at the end of the previous quarter.
In the financial world, there are tons of indicators shareholders can use to watch the equity markets. A duo of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top money managers can trounce their index-focused peers by a significant amount (see just how much).
Equally as important, bullish insider trading activity is another way to break down the investments you’re interested in. Obviously, there are a variety of reasons for an executive to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this strategy if “monkeys” understand where to look (learn more here).
Consequently, let’s take a peek at the recent action surrounding Enstar Group Ltd. (NASDAQ:ESGR).
How have hedgies been trading Enstar Group Ltd. (NASDAQ:ESGR)?
At Q1’s end, a total of 8 of the hedge funds we track were bullish in this stock, a change of 33% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly.
According to our comprehensive database, Akre Capital Management, managed by Charles Akre, holds the most valuable position in Enstar Group Ltd. (NASDAQ:ESGR). Akre Capital Management has a $62.6 million position in the stock, comprising 3.5% of its 13F portfolio. Sitting at the No. 2 spot is Chuck Royce of Royce & Associates, with a $15 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and Cliff Asness’s AQR Capital Management.
As industrywide interest jumped, some big names were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, assembled the most outsized position in Enstar Group Ltd. (NASDAQ:ESGR). Citadel Investment Group had 0.5 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also made a $0.5 million investment in the stock during the quarter. The other funds with brand new ESGR positions are Mike Vranos’s Ellington and Israel Englander’s Millennium Management.
What have insiders been doing with Enstar Group Ltd. (NASDAQ:ESGR)?
Insider buying is particularly usable when the company in focus has experienced transactions within the past six months. Over the last half-year time frame, Enstar Group Ltd. (NASDAQ:ESGR) has seen 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Enstar Group Ltd. (NASDAQ:ESGR). These stocks are Kemper Corporation (NYSE:KMPR), The Hanover Insurance Group, Inc. (NYSE:THG), MBIA Inc. (NYSE:MBI), Mercury General Corporation (NYSE:MCY), and Endurance Specialty Holdings Ltd. (NYSE:ENH). This group of stocks belong to the property & casualty insurance industry and their market caps resemble ESGR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Kemper Corporation (NYSE:KMPR) | 4 | 0 | 3 |
| The Hanover Insurance Group, Inc. (NYSE:THG) | 10 | 0 | 5 |
| MBIA Inc. (NYSE:MBI) | 27 | 0 | 0 |
| Mercury General Corporation (NYSE:MCY) | 8 | 0 | 3 |
| Endurance Specialty Holdings Ltd. (NYSE:ENH) | 12 | 0 | 6 |
With the returns exhibited by Insider Monkey’s research, everyday investors must always watch hedge fund and insider trading sentiment, and Enstar Group Ltd. (NASDAQ:ESGR) shareholders fit into this picture quite nicely.
