At the moment, there are a multitude of metrics shareholders can use to track Mr. Market. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform the S&P 500 by a superb amount (see just how much).
Equally as useful, positive insider trading activity is another way to analyze the world of equities. Just as you’d expect, there are plenty of stimuli for an insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if investors know where to look (learn more here).
Keeping this in mind, we’re going to discuss the recent info for Home Loan Servicing Solutions Ltd (NASDAQ:HLSS).
Hedge fund activity in Home Loan Servicing Solutions Ltd (NASDAQ:HLSS)
At Q2’s end, a total of 17 of the hedge funds we track were bullish in this stock, a change of 6% from the first quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings considerably.
As one would understandably expect, particular hedge funds were breaking ground themselves. Millennium Management, managed by Israel Englander, established the most outsized position in Home Loan Servicing Solutions Ltd (NASDAQ:HLSS). Millennium Management had 34.7 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also made a $28.2 million investment in the stock during the quarter. The following funds were also among the new HLSS investors: Steven Cohen’s SAC Capital Advisors, Ken Griffin’s Citadel Investment Group, and Jim Simons’s Renaissance Technologies.
What do corporate executives and insiders think about Home Loan Servicing Solutions Ltd (NASDAQ:HLSS)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has seen transactions within the past half-year. Over the last half-year time period, Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) has seen 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 Home Loan Servicing Solutions Ltd (NASDAQ:HLSS). These stocks are Hercules Technology Growth Capital Inc (NYSE:HTGC), HFF, Inc. (NYSE:HF), KKR Financial Holdings LLC (NYSE:KFN), Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), and Walter Investment Management Corp (NYSE:WAC). All of these stocks are in the mortgage investment industry and their market caps resemble HLSS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Hercules Technology Growth Capital Inc (NYSE:HTGC) | 6 | 0 | 0 |
| HFF, Inc. (NYSE:HF) | 7 | 0 | 0 |
| KKR Financial Holdings LLC (NYSE:KFN) | 18 | 0 | 0 |
| Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) | 13 | 0 | 0 |
| Walter Investment Management Corp (NYSE:WAC) | 17 | 0 | 0 |
Using the results shown by the previously mentioned research, average investors must always keep one eye on hedge fund and insider trading sentiment, and Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) applies perfectly to this mantra.
