Dynex Capital Inc (NYSE:DX) was in 6 hedge funds’ portfolio at the end of the fourth quarter of 2012. DX shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months. There were 5 hedge funds in our database with DX holdings at the end of the previous quarter.
At the moment, there are dozens of gauges investors can use to track publicly traded companies. Some of the most useful 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 broader indices by a solid amount (see just how much).
Equally as integral, optimistic insider trading activity is a second way to parse down the marketplace. There are a number of reasons for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the market-beating potential of this strategy if “monkeys” know what to do (learn more here).
With these “truths” under our belt, let’s take a glance at the latest action surrounding Dynex Capital Inc (NYSE:DX).
How have hedgies been trading Dynex Capital Inc (NYSE:DX)?
Heading into 2013, a total of 6 of the hedge funds we track held long positions in this stock, a change of 20% from the third quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their holdings significantly.
Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the biggest position in Dynex Capital Inc (NYSE:DX). Renaissance Technologies has a $3.3 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies’s heels is Clough Capital Partners, managed by Charles Clough, which held a $3.3 million position; 0.1% of its 13F portfolio is allocated to the company. Other peers that are bullish include Bruce Silver’s Silver Capital Management LLC, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.
With a general bullishness amongst the heavyweights, key money managers have jumped into Dynex Capital Inc (NYSE:DX) headfirst. Silver Capital Management LLC, managed by Bruce Silver, initiated the most valuable position in Dynex Capital Inc (NYSE:DX). Silver Capital Management LLC had 2.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.3 million investment in the stock during the quarter.
What have insiders been doing with Dynex Capital Inc (NYSE:DX)?
Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past half-year. Over the latest six-month time frame, Dynex Capital Inc (NYSE:DX) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Dynex Capital Inc (NYSE:DX). These stocks are Associated Estates Realty Corporation (NYSE:AEC), Silver Bay Realty Trust Corp (NYSE:SBY), Resource Capital Corp. (NYSE:RSO), and Apollo Residential Mortgage Inc (NYSE:AMTG). All of these stocks are in the reit – residential industry and their market caps are closest to DX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Associated Estates Realty Corporation (NYSE:AEC) | 6 | 0 | 5 |
| Silver Bay Realty Trust Corp (NYSE:SBY) | 11 | 8 | 3 |
| Resource Capital Corp. (NYSE:RSO) | 7 | 0 | 0 |
| Apollo Residential Mortgage Inc (NYSE:AMTG) | 8 | 1 | 0 |
With the returns demonstrated by the aforementioned strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Dynex Capital Inc (NYSE:DX) is an important part of this process.
