Should Maiden Holdings, Ltd. (NASDAQ:MHLD) investors track the following data?
In the 21st century investor’s toolkit, there are many indicators market participants can use to watch publicly traded companies. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the broader indices by a solid margin (see just how much).
Equally as key, bullish insider trading activity is a second way to look at the world of equities. There are many motivations for a corporate insider to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this strategy if “monkeys” know what to do (learn more here).
Now that that’s out of the way, it’s important to study the recent info about Maiden Holdings, Ltd. (NASDAQ:MHLD).
What have hedge funds been doing with Maiden Holdings, Ltd. (NASDAQ:MHLD)?
Heading into Q3, a total of 11 of the hedge funds we track were long in this stock, a change of -8% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings considerably.
Out of the hedge funds we follow, Michael Lowenstein’s Kensico Capital had the largest position in Maiden Holdings, Ltd. (NASDAQ:MHLD), worth close to $30.6 million, comprising 0.8% of its total 13F portfolio. On Kensico Capital’s heels is Corsair Capital Management, managed by Jay Petschek and Steven Major, which held a $11.5 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Remaining peers that are bullish include D. E. Shaw’s D E Shaw, Robert B. Gillam’s McKinley Capital Management and Israel Englander’s Millennium Management.
As Maiden Holdings, Ltd. (NASDAQ:MHLD) has experienced dropping sentiment from upper-tier hedge fund managers, we can see that there lies a certain “tier” of hedgies who sold off their entire stakes last quarter. Interestingly, Michael Doheny’s Freshford Capital Management said goodbye to the largest position of all the hedgies we key on, totaling about $4 million in stock, and Jim Simons of Renaissance Technologies was right behind this move, as the fund said goodbye to about $3.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 1 funds last quarter.
Insider trading activity in Maiden Holdings, Ltd. (NASDAQ:MHLD)
Bullish insider trading is best served when the company we’re looking at has seen transactions within the past six months. Over the last six-month time period, Maiden Holdings, Ltd. (NASDAQ:MHLD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Maiden Holdings, Ltd. (NASDAQ:MHLD). These stocks are State Auto Financial (NASDAQ:STFC), The Navigators Group, Inc (NASDAQ:NAVG), Horace Mann Educators Corporation (NYSE:HMN), Employers Holdings, Inc. (NYSE:EIG), and Safety Insurance Group, Inc. (NASDAQ:SAFT). All of these stocks are in the property & casualty insurance industry and their market caps are similar to MHLD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| State Auto Financial (NASDAQ:STFC) | 4 | 0 | 0 |
| The Navigators Group, Inc (NASDAQ:NAVG) | 4 | 0 | 0 |
| Horace Mann Educators Corporation (NYSE:HMN) | 8 | 0 | 0 |
| Employers Holdings, Inc. (NYSE:EIG) | 14 | 0 | 0 |
| Safety Insurance Group, Inc. (NASDAQ:SAFT) | 7 | 0 | 0 |
Using the results shown by our tactics, regular investors must always track hedge fund and insider trading sentiment, and Maiden Holdings, Ltd. (NASDAQ:MHLD) is an important part of this process.
