In the financial world, there are dozens of methods shareholders can use to monitor the equity markets. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outpace the market by a healthy amount (see just how much).
Equally as key, bullish insider trading sentiment is a second way to break down the stock market universe. There are plenty of reasons for an executive to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this strategy if investors understand what to do (learn more here).
With these “truths” under our belt, it’s important to take a look at the latest action surrounding Perry Ellis International, Inc. (NASDAQ:PERY).
How are hedge funds trading Perry Ellis International, Inc. (NASDAQ:PERY)?
At the end of the first quarter, a total of 12 of the hedge funds we track held long positions in this stock, a change of 33% from the previous quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.
According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Perry Ellis International, Inc. (NASDAQ:PERY). Royce & Associates has a $16.8 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Kendall Square Capital, managed by Jason F. Harris, which held a $7.4 million position; 4.9% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include Cliff Asness’s AQR Capital Management, Joel Greenblatt’s Gotham Asset Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
As one would reasonably expect, key hedge funds have been driving this bullishness. PEAK6 Capital Management, managed by Matthew Hulsizer, initiated the most valuable call position in Perry Ellis International, Inc. (NASDAQ:PERY). PEAK6 Capital Management had 0.6 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $0.4 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies and Paul Tudor Jones’s Tudor Investment Corp.
How are insiders trading Perry Ellis International, Inc. (NASDAQ:PERY)?
Bullish insider trading is most useful when the company in focus has experienced transactions within the past six months. Over the last half-year time period, Perry Ellis International, Inc. (NASDAQ:PERY) has experienced zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
With the results exhibited by the aforementioned strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Perry Ellis International, Inc. (NASDAQ:PERY) shareholders fit into this picture quite nicely.
