BlackRock, Inc. (NYSE:BLK) investors: listen up.
In today’s marketplace, there are many methods investors can use to watch Mr. Market. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass the broader indices by a solid amount (see just how much).
Just as necessary, bullish insider trading sentiment is a second way to look at the marketplace. As the old adage goes: there are a variety of stimuli for an executive to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this strategy if investors understand where to look (learn more here).
Keeping this in mind, let’s study the latest info for BlackRock, Inc. (NYSE:BLK).
What does the smart money think about BlackRock, Inc. (NYSE:BLK)?
Heading into Q3, a total of 26 of the hedge funds we track were bullish in this stock, a change of -19% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably.
When using filings from the hedgies we track, Natixis Global Asset Management’s Harris Associates had the largest position in BlackRock, Inc. (NYSE:BLK), worth close to $95.2 million, accounting for 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $57.5 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include D. E. Shaw’s D E Shaw, and Malcolm Fairbairn’s Ascend Capital.
Since BlackRock, Inc. (NYSE:BLK) has faced declining interest from the top-tier hedge fund industry, logic holds that there was a specific group of hedgies that elected to cut their full holdings heading into Q2. Intriguingly, Ken Heebner’s Capital Growth Management sold off the largest stake of all the hedgies we key on, comprising an estimated $89.4 million in stock. Louis Bacon’s fund, Moore Global Investments, also dumped its stock, about $71.9 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 6 funds heading into Q2.
What have insiders been doing with BlackRock, Inc. (NYSE:BLK)?
Legal insider trading, particularly when it’s bullish, is best served when the company in focus has experienced transactions within the past 180 days. Over the last half-year time period, BlackRock, Inc. (NYSE:BLK) has experienced 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to BlackRock, Inc. (NYSE:BLK). These stocks are T. Rowe Price Group, Inc. (NASDAQ:TROW), The Blackstone Group L.P. (NYSE:BX), State Street Corporation (NYSE:STT), Franklin Resources, Inc. (NYSE:BEN), and The Bank of New York Mellon Corporation (NYSE:BK). This group of stocks are in the asset management industry and their market caps are similar to BLK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| T. Rowe Price Group, Inc. (NASDAQ:TROW) | 29 | 0 | 2 |
| The Blackstone Group L.P. (NYSE:BX) | 31 | 0 | 2 |
| State Street Corporation (NYSE:STT) | 32 | 0 | 8 |
| Franklin Resources, Inc. (NYSE:BEN) | 39 | 0 | 3 |
| The Bank of New York Mellon Corporation (NYSE:BK) | 39 | 0 | 2 |
Using the returns shown by the previously mentioned tactics, regular investors must always keep one eye on hedge fund and insider trading activity, and BlackRock, Inc. (NYSE:BLK) applies perfectly to this mantra.
