Is ING Groep N.V. (ADR) (NYSE:ING) a good investment?
In the eyes of many traders, hedge funds are seen as delayed, outdated investment tools of an era lost to time. Although there are more than 8,000 hedge funds trading currently, this site aim at the leaders of this group, about 525 funds. It is assumed that this group has its hands on the majority of the smart money’s total capital, and by watching their highest quality stock picks, we’ve identified a few investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as necessary, positive insider trading sentiment is another way to look at the investments you’re interested in. Just as you’d expect, there are lots of reasons for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this tactic if piggybackers know where to look (learn more here).
Thus, let’s discuss the recent info about ING Groep N.V. (ADR) (NYSE:ING).
What have hedge funds been doing with ING Groep N.V. (ADR) (NYSE:ING)?
At Q2’s end, a total of 22 of the hedge funds we track held long positions in this stock, a change of 175% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings substantially.
According to our 13F database, Luxor Capital Group, managed by Christian Leone, holds the most valuable position in ING Groep N.V. (ADR) (NYSE:ING). Luxor Capital Group has a $188.9 million position in the stock, comprising 5.1% of its 13F portfolio. Coming in second is Pzena Investment Management, managed by Richard S. Pzena, which held a $186.3 million position; 1.2% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include David Einhorn’s Greenlight Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Jay Petschek and Steven Major’s Corsair Capital Management.
With a general bullishness amongst the titans, particular hedge funds have been driving this bullishness. Luxor Capital Group, managed by Christian Leone, created the largest position in ING Groep N.V. (ADR) (NYSE:ING). Luxor Capital Group had 188.9 million invested in the company at the end of the quarter. Richard S. Pzena’s Pzena Investment Management also initiated a $186.3 million position during the quarter. The other funds with new positions in the stock are David Einhorn’s Greenlight Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Jay Petschek and Steven Major’s Corsair Capital Management.
What do corporate executives and insiders think about ING Groep N.V. (ADR) (NYSE:ING)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time frame, ING Groep N.V. (ADR) (NYSE:ING) has experienced zero unique insiders purchasing, and zero 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 ING Groep N.V. (ADR) (NYSE:ING). These stocks are Sun Life Financial Inc. (USA) (NYSE:SLF), Metlife Inc (NYSE:MET), Prudential Public Limited Company (ADR) (NYSE:PUK), Manulife Financial Corporation (USA) (NYSE:MFC), and Prudential Financial Inc (NYSE:PRU). This group of stocks belong to the life insurance industry and their market caps match ING’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Sun Life Financial Inc. (USA) (NYSE:SLF) | 5 | 0 | 0 |
| Metlife Inc (NYSE:MET) | 55 | 0 | 0 |
| Prudential Public Limited Company (ADR) (NYSE:PUK) | 9 | 0 | 0 |
| Manulife Financial Corporation (USA) (NYSE:MFC) | 14 | 0 | 0 |
| Prudential Financial Inc (NYSE:PRU) | 31 | 0 | 0 |
Using the returns shown by the previously mentioned strategies, regular investors should always keep one eye on hedge fund and insider trading activity, and ING Groep N.V. (ADR) (NYSE:ING) applies perfectly to this mantra.
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ING Groep N.V. (ADR) (ING): Are Hedge Funds Right About This Stock?
