XPO Logistics Inc (NYSE:XPO) has experienced a decrease in support from the world’s most elite money managers in recent months.
To the average investor, there are tons of indicators investors can use to watch publicly traded companies. A couple of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can trounce their index-focused peers by a significant margin (see just how much).
Just as beneficial, bullish insider trading activity is another way to break down the financial markets. There are many motivations for an upper level exec to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the market-beating potential of this strategy if “monkeys” know where to look (learn more here).
Consequently, it’s important to take a look at the recent action regarding XPO Logistics Inc (NYSE:XPO).
How are hedge funds trading XPO Logistics Inc (NYSE:XPO)?
At year’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of -18% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Marble Arch Investments, managed by Scott McLellan, holds the largest position in XPO Logistics Inc (NYSE:XPO). Marble Arch Investments has a $13.5 million position in the stock, comprising 1.2% of its 13F portfolio. On Marble Arch Investments’s heels is Brian Bares of Bares Capital Management, with a $11.6 million position; the fund has 2% of its 13F portfolio invested in the stock. Other peers with similar optimism include Julian Robertson’s Tiger Management, Chuck Royce’s Royce & Associates and David Keidan’s Buckingham Capital Management.
Since XPO Logistics Inc (NYSE:XPO) has faced bearish sentiment from hedge fund managers, it’s easy to see that there exists a select few hedgies that slashed their positions entirely in Q4. At the top of the heap, Michael A. Price and Amos Meron’s Empyrean Capital Partners dropped the biggest position of all the hedgies we watch, worth an estimated $0.6 million in stock.. Israel Englander’s fund, Catapult Capital Management, also dropped its stock, about $0.4 million worth. These transactions are important to note, as total hedge fund interest dropped by 2 funds in Q4.
Insider trading activity in XPO Logistics Inc (NYSE:XPO)
Insider buying is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest six-month time period, XPO Logistics Inc (NYSE:XPO) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to XPO Logistics Inc (NYSE:XPO). These stocks are Hub Group Inc (NASDAQ:HUBG), Radiant Logistics, Inc. (NYSEAMEX:RLGT), Forward Air Corporation (NASDAQ:FWRD), Roadrunner Transportation Systems Inc (NYSE:RRTS), and Air Transport Services Group Inc. (NASDAQ:ATSG). This group of stocks are the members of the air delivery & freight services industry and their market caps are closest to XPO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Hub Group Inc (NASDAQ:HUBG) | 13 | 0 | 4 |
| Radiant Logistics, Inc. (NYSEAMEX:RLGT) | 1 | 2 | 0 |
| Forward Air Corporation (NASDAQ:FWRD) | 7 | 0 | 7 |
| Roadrunner Transportation Systems Inc (NYSE:RRTS) | 9 | 1 | 2 |
| Air Transport Services Group Inc. (NASDAQ:ATSG) | 10 | 3 | 1 |
With the results demonstrated by Insider Monkey’s studies, everyday investors should always pay attention to hedge fund and insider trading activity, and XPO Logistics Inc (NYSE:XPO) shareholders fit into this picture quite nicely.
