At the moment, there are dozens of metrics investors can use to analyze the equity markets. A pair of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outperform their index-focused peers by a superb margin (see just how much).
Just as key, optimistic insider trading activity is another way to analyze the world of equities. As the old adage goes: there are lots of reasons for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).
Thus, we’re going to analyze the newest info surrounding AllianceBernstein Holding LP (NYSE:AB).
How are hedge funds trading AllianceBernstein Holding LP (NYSE:AB)?
At Q2’s end, a total of 9 of the hedge funds we track were long in this stock, a change of -10% from the first quarter. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.
Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the most valuable position in AllianceBernstein Holding LP (NYSE:AB). Royce & Associates has a $85.1 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is GAMCO Investors, managed by Mario Gabelli, which held a $11.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Jim Simons’s Renaissance Technologies, John A. Levin’s Levin Capital Strategies and Charles Davidson’s Wexford Capital.
Because AllianceBernstein Holding LP (NYSE:AB) has faced declining interest from the entirety of the hedge funds we track, it’s easy to see that there were a few money managers who were dropping their positions entirely heading into Q2. At the top of the heap, Steven Owsley’s Madison Street Partners cut the biggest stake of the 450+ funds we track, worth about $0.4 million in stock. Bill Miller’s fund, Legg Mason Capital Management, also sold off its stock, about $0.1 million worth. These transactions are important to note, as total hedge fund interest dropped by 1 funds heading into Q2.
How are insiders trading AllianceBernstein Holding LP (NYSE:AB)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last half-year time period, AllianceBernstein Holding LP (NYSE:AB) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to AllianceBernstein Holding LP (NYSE:AB). These stocks are Cohen & Steers, Inc. (NYSE:CNS), Financial Engines Inc (NASDAQ:FNGN), Fortress Investment Group LLC (NYSE:FIG), Janus Capital Group Inc (NYSE:JNS), and Federated Investors Inc (NYSE:FII). This group of stocks are in the asset management industry and their market caps are closest to AB’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cohen & Steers, Inc. (NYSE:CNS) | 6 | 0 | 0 |
| Financial Engines Inc (NASDAQ:FNGN) | 8 | 0 | 0 |
| Fortress Investment Group LLC (NYSE:FIG) | 11 | 0 | 0 |
| Janus Capital Group Inc (NYSE:JNS) | 19 | 0 | 0 |
| Federated Investors Inc (NYSE:FII) | 16 | 0 | 0 |
Using the results explained by Insider Monkey’s research, regular investors should always track hedge fund and insider trading sentiment, and AllianceBernstein Holding LP (NYSE:AB) is an important part of this process.
