Blackrock Kelso Capital Corp. (NASDAQ:BKCC) investors should be aware of an increase in hedge fund sentiment of late.
In the 21st century investor’s toolkit, there are a multitude of indicators investors can use to watch the equity markets. A couple of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can outclass the broader indices by a solid amount (see just how much).
Equally as important, positive insider trading activity is a second way to parse down the marketplace. As the old adage goes: there are plenty of stimuli for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this method if you know where to look (learn more here).
With these “truths” under our belt, we’re going to take a gander at the latest action regarding Blackrock Kelso Capital Corp. (NASDAQ:BKCC).
What have hedge funds been doing with Blackrock Kelso Capital Corp. (NASDAQ:BKCC)?
In preparation for this year, a total of 5 of the hedge funds we track held long positions in this stock, a change of 25% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings substantially.
Of the funds we track, AQR Capital Management, managed by Cliff Asness, holds the most valuable position in Blackrock Kelso Capital Corp. (NASDAQ:BKCC). AQR Capital Management has a $12.6 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Two Sigma Advisors, managed by John Overdeck and David Siegel, which held a $1.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Bill Miller’s Legg Mason Capital Management, Ken Griffin’s Citadel Investment Group and David Costen Haley’s HBK Investments.
As aggregate interest increased, specific money managers have jumped into Blackrock Kelso Capital Corp. (NASDAQ:BKCC) headfirst. Citadel Investment Group, managed by Ken Griffin, established the biggest position in Blackrock Kelso Capital Corp. (NASDAQ:BKCC). Citadel Investment Group had 0.6 million invested in the company at the end of the quarter.
Insider trading activity in Blackrock Kelso Capital Corp. (NASDAQ:BKCC)
Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the latest six-month time frame, Blackrock Kelso Capital Corp. (NASDAQ:BKCC) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Blackrock Kelso Capital Corp. (NASDAQ:BKCC). These stocks are Epoch Holding Corp (NASDAQ:EPHC), Encore Capital Group, Inc. (NASDAQ:ECPG), The India Fund, Inc. (NYSE:IFN), Triangle Capital Corporation (NYSE:TCAP), and Pacific Coast Oil Trust (NYSE:ROYT). This group of stocks are the members of the asset management industry and their market caps resemble BKCC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Epoch Holding Corp (NASDAQ:EPHC) | 9 | 0 | 1 |
| Encore Capital Group, Inc. (NASDAQ:ECPG) | 6 | 0 | 2 |
| The India Fund, Inc. (NYSE:IFN) | 2 | 0 | 0 |
| Triangle Capital Corporation (NYSE:TCAP) | 4 | 0 | 0 |
| Pacific Coast Oil Trust (NYSE:ROYT) | 1 | 0 | 0 |
With the returns exhibited by our strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Blackrock Kelso Capital Corp. (NASDAQ:BKCC) is no exception.
