Is Fidelity National Financial Inc (FNF) Going to Burn These Hedge Funds?

Is Fidelity National Financial Inc (NYSE:FNF) undervalued? The smart money is in a bearish mood. The number of bullish hedge fund bets were cut by 8 lately.

In today’s marketplace, there are a multitude of metrics market participants can use to analyze stocks. Two 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 top fund managers can outpace the S&P 500 by a superb amount (see just how much).

Just as key, bullish insider trading sentiment is another way to break down the marketplace. There are a variety of incentives for a corporate insider to downsize shares of his or her company, but just one, very clear reason why they would buy. Various academic studies have demonstrated the valuable potential of this strategy if investors know what to do (learn more here).

With these “truths” under our belt, let’s take a gander at the key action regarding Fidelity National Financial Inc (NYSE:FNF).

What does the smart money think about Fidelity National Financial Inc (NYSE:FNF)?

In preparation for this quarter, a total of 31 of the hedge funds we track were bullish in this stock, a change of -21% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were increasing their holdings meaningfully.

Of the funds we track, Lee Ainslie’s Maverick Capital had the most valuable position in Fidelity National Financial Inc (NYSE:FNF), worth close to $242.3 million, accounting for 3.1% of its total 13F portfolio. Sitting at the No. 2 spot is Ricky Sandler of Eminence Capital, with a $128.7 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Kenneth Mario Garschina’s Mason Capital Management, John Paulson’s Paulson & Co and Ken Griffin’s Citadel Investment Group.

Due to the fact that Fidelity National Financial Inc (NYSE:FNF) has experienced declining sentiment from the smart money, we can see that there was a specific group of hedge funds that decided to sell off their full holdings in Q1. It’s worth mentioning that Jacob Doft’s Highline Capital Management cut the largest position of the 450+ funds we watch, totaling an estimated $31 million in stock.. Charles Davidson’s fund, Wexford Capital, also sold off its stock, about $28.9 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 8 funds in Q1.

How are insiders trading Fidelity National Financial Inc (NYSE:FNF)?

Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the latest 180-day time frame, Fidelity National Financial Inc (NYSE:FNF) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Fidelity National Financial Inc (NYSE:FNF). These stocks are Triad Guaranty Inc. (PINK:TGIC), Investors Title Company (NASDAQ:ITIC), OneBeacon Insurance Group, Ltd. (NYSE:OB), Old Republic International Corporation (NYSE:ORI), and Assured Guaranty Ltd. (NYSE:AGO). All of these stocks are in the surety & title insurance industry and their market caps match FNF’s market cap.