Aspen Insurance Holdings Limited (NYSE:AHL) was in 21 hedge funds’ portfolio at the end of the fourth quarter of 2012. AHL has experienced a decrease in hedge fund sentiment recently. There were 22 hedge funds in our database with AHL positions atthe end of the previous quarter.
In the 21st century investor’s toolkit, there are a multitude of methods shareholders can use to watch Mr. Market. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outpace the S&P 500 by a significant amount (see just how much).
Just as key, positive insider trading sentiment is another way to parse down the marketplace. As the old adage goes: there are a variety of reasons for an insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the useful potential of this strategy if piggybackers know what to do (learn more here).
With all of this in mind, let’s take a glance at the latest action encompassing Aspen Insurance Holdings Limited (NYSE:AHL).
How have hedgies been trading Aspen Insurance Holdings Limited (NYSE:AHL)?
At the end of the fourth quarter, a total of 21 of the hedge funds we track were bullish in this stock, a change of -5% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly.
Of the funds we track, Greenlight Capital, managed by David Einhorn, holds the biggest position in Aspen Insurance Holdings Limited (NYSE:AHL). Greenlight Capital has a $158 million position in the stock, comprising 2.5% of its 13F portfolio. Coming in second is Royce & Associates, managed by Chuck Royce, which held a $82 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies with similar optimism include Anthony Bozza’s Lakewood Capital Management, David Dreman’s Dreman Value Management and Richard S. Pzena’s Pzena Investment Management.
Since Aspen Insurance Holdings Limited (NYSE:AHL) has experienced bearish sentiment from the smart money, it’s easy to see that there lies a certain “tier” of fund managers that decided to sell off their positions entirely heading into 2013. Intriguingly, Mark Travis’s Intrepid Capital Management cut the largest investment of the “upper crust” of funds we watch, totaling an estimated $31 million in stock., and Cliff Asness of AQR Capital Management was right behind this move, as the fund dumped about $7 million worth. These moves are important to note, as total hedge fund interest was cut by 1 funds heading into 2013.
How are insiders trading Aspen Insurance Holdings Limited (NYSE:AHL)?
Insider buying is most useful when the company in question has experienced transactions within the past 180 days. Over the last 180-day time period, Aspen Insurance Holdings Limited (NYSE:AHL) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).
With the results exhibited by Insider Monkey’s research, everyday investors should always monitor hedge fund and insider trading activity, and Aspen Insurance Holdings Limited (NYSE:AHL) is an important part of this process.
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