To the average investor, there are tons of indicators investors can use to analyze the equity markets. A duo of the most under-the-radar 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 outpace the broader indices by a superb amount (see just how much).
Just as important, positive insider trading activity is a second way to parse down the marketplace. There are a number of reasons for a corporate insider to drop 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 method if investors know where to look (learn more here).
Consequently, it’s important to take a gander at the latest action encompassing Sovran Self Storage Inc (NYSE:SSS).
How have hedgies been trading Sovran Self Storage Inc (NYSE:SSS)?
Heading into 2013, a total of 10 of the hedge funds we track were bullish in this stock, a change of 11% from the previous quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their holdings significantly.
When looking at the hedgies we track, Capital Growth Management, managed by Ken Heebner, holds the biggest position in Sovran Self Storage Inc (NYSE:SSS). Capital Growth Management has a $75.5 million position in the stock, comprising 2% of its 13F portfolio. The second largest stake is held by Fisher Asset Management, managed by Ken Fisher, which held a $60.3 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Jim Simons’s Renaissance Technologies, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management.
Consequently, key hedge funds have jumped into Sovran Self Storage Inc (NYSE:SSS) headfirst. Millennium Management, managed by Israel Englander, created the largest position in Sovran Self Storage Inc (NYSE:SSS). Millennium Management had 5 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $0.4 million investment in the stock during the quarter.
How have insiders been trading Sovran Self Storage Inc (NYSE:SSS)?
Insider purchases made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time frame, Sovran Self Storage Inc (NYSE:SSS) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Sovran Self Storage Inc (NYSE:SSS). These stocks are Eastgroup Properties Inc (NYSE:EGP), CubeSmart (NYSE:CUBE), First Industrial Realty Trust, Inc. (NYSE:FR), Potlatch Corporation (NASDAQ:PCH), and DCT Industrial Trust Inc. (NYSE:DCT). This group of stocks are in the reit – industrial industry and their market caps resemble SSS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Eastgroup Properties Inc (NYSE:EGP) | 2 | 0 | 4 |
| CubeSmart (NYSE:CUBE) | 4 | 0 | 1 |
| First Industrial Realty Trust, Inc. (NYSE:FR) | 13 | 1 | 3 |
| Potlatch Corporation (NASDAQ:PCH) | 11 | 1 | 9 |
| DCT Industrial Trust Inc. (NYSE:DCT) | 7 | 0 | 2 |
With the returns shown by our time-tested strategies, everyday investors must always monitor hedge fund and insider trading sentiment, and Sovran Self Storage Inc (NYSE:SSS) is no exception.
