According to most stock holders, hedge funds are assumed to be slow, old financial tools of years past. While there are more than 8000 funds in operation today, we choose to focus on the elite of this club, around 450 funds. It is estimated that this group controls the majority of the smart money’s total capital, and by keeping an eye on their top investments, we have revealed a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).
Just as important, optimistic insider trading activity is another way to parse down the marketplace. Obviously, there are plenty of reasons for an insider to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the market-beating potential of this method if piggybackers know what to do (learn more here).
Now, it’s important to take a gander at the key action encompassing Fisher Communications, Inc. (NASDAQ:FSCI).
What does the smart money think about Fisher Communications, Inc. (NASDAQ:FSCI)?
In preparation for this quarter, a total of 8 of the hedge funds we track held long positions in this stock, a change of 14% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, GAMCO Investors, managed by Mario Gabelli, holds the biggest position in Fisher Communications, Inc. (NASDAQ:FSCI). GAMCO Investors has a $72.8 million position in the stock, comprising 0.5% of its 13F portfolio. The second largest stake is held by FrontFour Capital Group, managed by Stephen Loukas, David A. Lorber, Zachary George, which held a $16.5 million position; the fund has 5.5% of its 13F portfolio invested in the stock. Other peers with similar optimism include Matthew Hulsizer’s PEAK6 Capital Management, Joel Greenblatt’s Gotham Asset Management and Jim Simons’s Renaissance Technologies.
As industrywide interest jumped, key hedge funds have been driving this bullishness. PEAK6 Capital Management, managed by Matthew Hulsizer, established the most outsized call position in Fisher Communications, Inc. (NASDAQ:FSCI). PEAK6 Capital Management had 0.9 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $0.8 million investment in the stock during the quarter. The other funds with brand new FSCI positions are Matthew Hulsizer’s PEAK6 Capital Management and D. E. Shaw’s D E Shaw.
How are insiders trading Fisher Communications, Inc. (NASDAQ:FSCI)?
Bullish insider trading is best served when the company in question has experienced transactions within the past half-year. Over the latest half-year time period, Fisher Communications, Inc. (NASDAQ:FSCI) has seen 4 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Fisher Communications, Inc. (NASDAQ:FSCI). These stocks are Nexstar Broadcasting Group, Inc. (NASDAQ:NXST), Outdoor Channel Holdings, Inc. (NASDAQ:OUTD), Gray Television, Inc. (NYSE:GTN), Entravision Communication (NYSE:EVC), and Central European Media Enterprises Ltd. (NASDAQ:CETV). This group of stocks belong to the broadcasting – tv industry and their market caps resemble FSCI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) | 21 | 1 | 9 |
| Outdoor Channel Holdings, Inc. (NASDAQ:OUTD) | 6 | 0 | 0 |
| Gray Television, Inc. (NYSE:GTN) | 17 | 0 | 2 |
| Entravision Communication (NYSE:EVC) | 7 | 0 | 5 |
| Central European Media Enterprises Ltd. (NASDAQ:CETV) | 9 | 0 | 0 |
With the returns demonstrated by our studies, everyday investors must always watch hedge fund and insider trading sentiment, and Fisher Communications, Inc. (NASDAQ:FSCI) applies perfectly to this mantra.
