Luxottica Group SpA (ADR) (NYSE:LUX) was in 6 hedge funds’ portfolio at the end of December. LUX has experienced a decrease in hedge fund sentiment lately. There were 7 hedge funds in our database with LUX holdings at the end of the previous quarter.
In the financial world, there are a multitude of methods market participants can use to analyze Mr. Market. A couple of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can trounce the broader indices by a very impressive margin (see just how much).
Equally as beneficial, positive insider trading sentiment is another way to parse down the world of equities. As the old adage goes: there are a number of stimuli for a bullish insider to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this method if “monkeys” understand what to do (learn more here).
Keeping this in mind, it’s important to take a gander at the recent action surrounding Luxottica Group SpA (ADR) (NYSE:LUX).
How have hedgies been trading Luxottica Group SpA (ADR) (NYSE:LUX)?
At the end of the fourth quarter, a total of 6 of the hedge funds we track were long in this stock, a change of -14% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings substantially.
Of the funds we track, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in Luxottica Group SpA (ADR) (NYSE:LUX). Fisher Asset Management has a $67.4 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $2.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Robert B. Gillam’s McKinley Capital Management, Steven Cohen’s SAC Capital Advisors and David Costen Haley’s HBK Investments.
Due to the fact that Luxottica Group SpA (ADR) (NYSE:LUX) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of money managers that decided to sell off their entire stakes last quarter. It’s worth mentioning that Israel Englander’s Millennium Management dropped the largest stake of the “upper crust” of funds we watch, comprising an estimated $0.7 million in stock., and Louis Navellier of Navellier & Associates was right behind this move, as the fund said goodbye to about $0.3 million worth. These moves are interesting, as aggregate hedge fund interest fell by 1 funds last quarter.
Insider trading activity in Luxottica Group SpA (ADR) (NYSE:LUX)
Bullish insider trading is particularly usable when the company in focus has seen transactions within the past half-year. Over the latest half-year time frame, Luxottica Group SpA (ADR) (NYSE:LUX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Luxottica Group SpA (ADR) (NYSE:LUX). These stocks are Charles & Colvard, Ltd. (NASDAQ:CTHR), Zale Corporation (NYSE:ZLC), Blue Nile Inc (NASDAQ:NILE), Signet Jewelers Ltd. (NYSE:SIG), and Tiffany & Co. (NYSE:TIF). This group of stocks are in the jewelry stores industry and their market caps are closest to LUX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Charles & Colvard, Ltd. (NASDAQ:CTHR) | 2 | 2 | 0 |
| Zale Corporation (NYSE:ZLC) | 9 | 0 | 1 |
| Blue Nile Inc (NASDAQ:NILE) | 3 | 0 | 1 |
| Signet Jewelers Ltd. (NYSE:SIG) | 25 | 0 | 3 |
| Tiffany & Co. (NYSE:TIF) | 27 | 1 | 10 |
With the results demonstrated by Insider Monkey’s research, retail investors must always watch hedge fund and insider trading activity, and Luxottica Group SpA (ADR) (NYSE:LUX) applies perfectly to this mantra.
