World Wrestling Entertainment, Inc. (NYSE:WWE) was in 12 hedge funds’ portfolio at the end of the fourth quarter of 2012. WWE investors should pay attention to a decrease in hedge fund sentiment of late. There were 14 hedge funds in our database with WWE positions at the end of the previous quarter.
To the average investor, there are plenty of indicators market participants can use to monitor Mr. Market. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can beat the broader indices by a superb amount (see just how much).
Equally as integral, positive insider trading sentiment is a second way to parse down the financial markets. Obviously, there are a number of motivations for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the impressive potential of this tactic if piggybackers know what to do (learn more here).
Now, we’re going to take a glance at the key action encompassing World Wrestling Entertainment, Inc. (NYSE:WWE).
What does the smart money think about World Wrestling Entertainment, Inc. (NYSE:WWE)?
Heading into 2013, a total of 12 of the hedge funds we track held long positions in this stock, a change of -14% from the third quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.
Of the funds we track, Jim Simons’s Renaissance Technologies had the most valuable position in World Wrestling Entertainment, Inc. (NYSE:WWE), worth close to $16 million, comprising 0% of its total 13F portfolio. On Renaissance Technologies’s heels is Chuck Royce of Royce & Associates, with a $16 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Mario Cibelli’s Marathon Partners, Ken Griffin’s Citadel Investment Group and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Due to the fact that World Wrestling Entertainment, Inc. (NYSE:WWE) has faced falling interest from hedge fund managers, it’s safe to say that there was a specific group of hedge funds that decided to sell off their full holdings heading into 2013. Interestingly, Mark Travis’s Intrepid Capital Management dumped the largest investment of the 450+ funds we monitor, comprising an estimated $24 million in stock., and Joel Greenblatt of Gotham Asset Management was right behind this move, as the fund dumped about $0 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 2 funds heading into 2013.
How have insiders been trading World Wrestling Entertainment, Inc. (NYSE:WWE)?
Insider buying is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time period, World Wrestling Entertainment, Inc. (NYSE:WWE) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to World Wrestling Entertainment, Inc. (NYSE:WWE). These stocks are Starz (NASDAQ:STRZA), Live Nation Entertainment, Inc. (NYSE:LYV), IMAX Corporation (USA) (NYSE:IMAX), Promotora de Informaciones S.A. (NYSE:PRIS), and Bona Film Group Ltd (ADR) (NASDAQ:BONA). This group of stocks belong to the entertainment – diversified industry and their market caps are closest to WWE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Starz (NASDAQ:STRZA) | 2 | 0 | 2 |
| Live Nation Entertainment, Inc. (NYSE:LYV) | 17 | 2 | 1 |
| IMAX Corporation (USA) (NYSE:IMAX) | 19 | 0 | 9 |
| Promotora de Informaciones S.A. (NYSE:PRIS) | 5 | 0 | 0 |
| Bona Film Group Ltd (ADR) (NASDAQ:BONA) | 5 | 0 | 0 |
With the results exhibited by our studies, everyday investors should always keep an eye on hedge fund and insider trading activity, and World Wrestling Entertainment, Inc. (NYSE:WWE) is no exception.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.
