If you were to ask many traders, hedge funds are seen as overrated, old investment tools of a period lost to current times. Although there are In excess of 8,000 hedge funds trading in present day, Insider Monkey focuses on the masters of this club, about 525 funds. It is widely held that this group controls the majority of the smart money’s total capital, and by tracking their best investments, we’ve formulated a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as crucial, positive insider trading activity is a second way to look at the world of equities. As the old adage goes: there are lots of stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).
Keeping this in mind, it’s important to discuss the latest info for Moneygram International Inc (NYSE:MGI).
Hedge fund activity in Moneygram International Inc (NYSE:MGI)
At Q2’s end, a total of 12 of the hedge funds we track held long positions in this stock, a change of 20% from the first quarter. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably.
Out of the hedge funds we follow, Richard Blum’s Blum Capital Partners had the largest position in Moneygram International Inc (NYSE:MGI), worth close to $44 million, accounting for 7.2% of its total 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $32.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include John C. Walker’s Stonerise Capital Management, Israel Englander’s Millennium Management and Peter S. Park’s Park West Asset Management.
With a general bullishness amongst the titans, particular hedge funds have been driving this bullishness. Blum Capital Partners, managed by Richard Blum, initiated the biggest position in Moneygram International Inc (NYSE:MGI). Blum Capital Partners had 44 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also initiated a $32.3 million position during the quarter. The other funds with new positions in the stock are John C. Walker’s Stonerise Capital Management, Israel Englander’s Millennium Management, and Peter S. Park’s Park West Asset Management.
How are insiders trading Moneygram International Inc (NYSE:MGI)?
Insider buying made by high-level executives is at its handiest when the company in question has experienced transactions within the past half-year. Over the last 180-day time frame, Moneygram International Inc (NYSE:MGI) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Moneygram International Inc (NYSE:MGI). These stocks are Quad/Graphics, Inc. (NYSE:QUAD), TeleTech Holdings, Inc. (NASDAQ:TTEC), NetSpend Holdings Inc (NASDAQ:NTSP), ExlService Holdings, Inc. (NASDAQ:EXLS), and Infoblox Inc (NYSE:BLOX). This group of stocks are the members of the business services industry and their market caps are closest to MGI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Quad/Graphics, Inc. (NYSE:QUAD) | 10 | 0 | 0 |
| TeleTech Holdings, Inc. (NASDAQ:TTEC) | 11 | 0 | 0 |
| NetSpend Holdings Inc (NASDAQ:NTSP) | 15 | 0 | 0 |
| ExlService Holdings, Inc. (NASDAQ:EXLS) | 10 | 0 | 0 |
| Infoblox Inc (NYSE:BLOX) | 16 | 0 | 0 |
Using the returns explained by Insider Monkey’s tactics, average investors must always pay attention to hedge fund and insider trading activity, and Moneygram International Inc (NYSE:MGI) is no exception.
