Curious if hedgies are gambling on Wynn Resorts, Limited (NASDAQ:WYNN)?
To many traders, hedge funds are assumed to be useless, old investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation today, this site aim at the elite of this group, around 525 funds. It is widely held that this group oversees the majority of all hedge funds’ total capital, and by paying attention to their highest quality stock picks, we’ve determined a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year 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 outclassed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Equally as key, bullish insider trading activity is a second way to analyze the financial markets. Just as you’d expect, there are a number of incentives for an executive to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this method if you understand where to look (learn more here).
Thus, it’s important to study the latest info for Wynn Resorts, Limited (NASDAQ:WYNN).
What does the smart money think about Wynn Resorts, Limited (NASDAQ:WYNN)?
Heading into Q3, a total of 37 of the hedge funds we track held long positions in this stock, a change of 3% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly.
According to our 13F database, Rob Citrone’s Discovery Capital Management had the biggest position in Wynn Resorts, Limited (NASDAQ:WYNN), worth close to $153.4 million, accounting for 1.6% of its total 13F portfolio. Sitting at the No. 2 spot is Two Sigma Advisors, managed by John Overdeck and David Siegel, which held a $83.6 million position; 1.2% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Murray Stahl’s Horizon Asset Management, Christopher Lord’s Criterion Capital and Panayotis Sparaggis’s Alkeon Capital Management.
Consequently, particular hedge funds have been driving this bullishness. Discovery Capital Management, managed by Rob Citrone, assembled the most outsized position in Wynn Resorts, Limited (NASDAQ:WYNN). Discovery Capital Management had 153.4 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $83.6 million investment in the stock during the quarter. The following funds were also among the new WYNN investors: Murray Stahl’s Horizon Asset Management, Christopher Lord’s Criterion Capital, and Panayotis Sparaggis’s Alkeon Capital Management.
How have insiders been trading Wynn Resorts, Limited (NASDAQ:WYNN)?
Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time frame, Wynn Resorts, Limited (NASDAQ:WYNN) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Wynn Resorts, Limited (NASDAQ:WYNN). These stocks are Penn National Gaming, Inc (NASDAQ:PENN), Carnival Corporation (NYSE:CCL), MGM Resorts International (NYSE:MGM), Royal Caribbean Cruises Ltd. (NYSE:RCL), and Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL). This group of stocks are the members of the resorts & casinos industry and their market caps are closest to WYNN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Penn National Gaming, Inc (NASDAQ:PENN) | 36 | 0 | 7 |
| Carnival Corporation (NYSE:CCL) | 31 | 1 | 4 |
| MGM Resorts International (NYSE:MGM) | 37 | 0 | 5 |
| Royal Caribbean Cruises Ltd. (NYSE:RCL) | 29 | 1 | 10 |
| Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) | 37 | 0 | 0 |
Using the returns demonstrated by our research, average investors must always keep one eye on hedge fund and insider trading sentiment, and Wynn Resorts, Limited (NASDAQ:WYNN) is no exception.
