In today’s marketplace, there are plenty of indicators market participants can use to watch stocks. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can trounce their index-focused peers by a very impressive amount (see just how much).
Equally as crucial, positive insider trading sentiment is another way to analyze the world of equities. Obviously, there are many incentives for an executive to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this method if investors know what to do (learn more here).
Now that that’s out of the way, it’s important to examine the newest info surrounding Marsh & McLennan Companies, Inc. (NYSE:MMC).
How are hedge funds trading Marsh & McLennan Companies, Inc. (NYSE:MMC)?
At the end of the second quarter, a total of 20 of the hedge funds we track were long in this stock, a change of -17% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.
Out of the hedge funds we follow, Phill Gross and Robert Atchinson’s Adage Capital Management had the largest position in Marsh & McLennan Companies, Inc. (NYSE:MMC), worth close to $45.6 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $44.6 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Charles de Vaulx’s International Value Advisers, D. E. Shaw’s D E Shaw and Philippe Jabre’s Jabre Capital Partners.
Because Marsh & McLennan Companies, Inc. (NYSE:MMC) has faced bearish sentiment from the smart money’s best and brightest, logic holds that there was a specific group of hedgies who sold off their entire stakes last quarter. At the top of the heap, Glenn Russell Dubin’s Highbridge Capital Management dumped the biggest stake of the 450+ funds we key on, valued at close to $18.3 million in stock, and Youlia Miteva of Proxima Capital Management was right behind this move, as the fund dropped about $8.9 million worth. These transactions are interesting, as total hedge fund interest fell by 4 funds last quarter.
What do corporate executives and insiders think about Marsh & McLennan Companies, Inc. (NYSE:MMC)?
Bullish insider trading is particularly usable when the company in focus has experienced transactions within the past half-year. Over the last 180-day time period, Marsh & McLennan Companies, Inc. (NYSE:MMC) has experienced zero unique insiders buying, 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 Marsh & McLennan Companies, Inc. (NYSE:MMC). These stocks are Erie Indemnity Company (NASDAQ:ERIE), Brown & Brown, Inc. (NYSE:BRO), Arthur J. Gallagher & Co. (NYSE:AJG), Willis Group Holdings PLC (NYSE:WSH), and Aon PLC (NYSE:AON). This group of stocks are in the insurance brokers industry and their market caps are closest to MMC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Erie Indemnity Company (NASDAQ:ERIE) | 6 | 0 | 0 |
| Brown & Brown, Inc. (NYSE:BRO) | 25 | 0 | 0 |
| Arthur J. Gallagher & Co. (NYSE:AJG) | 21 | 0 | 0 |
| Willis Group Holdings PLC (NYSE:WSH) | 19 | 0 | 0 |
| Aon PLC (NYSE:AON) | 32 | 0 | 0 |
Using the returns shown by our studies, average investors should always pay attention to hedge fund and insider trading activity, and Marsh & McLennan Companies, Inc. (NYSE:MMC) applies perfectly to this mantra.
