The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Selective Insurance Group (NASDAQ:SIGI).
Selective Insurance Group (NASDAQ:SIGI) has experienced an increase in enthusiasm from smart money of late. At the end of this article we will also compare SIGI to other stocks including Matador Resources Co (NYSE:MTDR), Delek US Holdings, Inc. (NYSE:DK), and Chimerix Inc (NASDAQ:CMRX) to get a better sense of its popularity.
Follow Selective Insurance Group Inc (NASDAQ:SIGI)
Follow Selective Insurance Group Inc (NASDAQ:SIGI)
In the 21st century investor’s toolkit there are tons of tools investors put to use to analyze publicly traded companies. Some of the less known tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the S&P 500 by a very impressive amount (see the details here).
Now, let’s check out the fresh action encompassing Selective Insurance Group (NASDAQ:SIGI).
How are hedge funds trading Selective Insurance Group (NASDAQ:SIGI)?
At Q3’s end, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 19% from the second quarter. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital has the most valuable position in Selective Insurance Group (NASDAQ:SIGI), worth close to $12 million, corresponding to 0.1% of its total 13F portfolio. On Arrowstreet Capital’s heels is Ken Griffin of Citadel Investment Group, with a $7.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish consist of Israel Englander’s Millennium Management, Dmitry Balyasny’s Balyasny Asset Management and John Overdeck and David Siegel’s Two Sigma Advisors.
Consequently, key hedge funds have jumped into Selective Insurance Group (NASDAQ:SIGI) headfirst. Visium Asset Management, managed by Jacob Gottlieb, established the most outsized position in Selective Insurance Group (NASDAQ:SIGI). Visium Asset Management had $1.6 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.7 million position during the quarter. The only other fund with a new position in the stock is Peter Muller’s PDT Partners.
Let’s now take a look at hedge fund activity in other stocks similar to Selective Insurance Group (NASDAQ:SIGI). These stocks are Matador Resources Co (NYSE:MTDR), Delek US Holdings, Inc. (NYSE:DK), Chimerix Inc (NASDAQ:CMRX), and Tahoe Resources Inc (NYSE:TAHO). This group of stocks’ market values resemble SIGI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MTDR | 10 | 44780 | -3 |
| DK | 30 | 513168 | 6 |
| CMRX | 17 | 206603 | -4 |
| TAHO | 13 | 55155 | 0 |
As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $205 million, significantly higher than the $44 million figure in SIGI’s case. Delek US Holdings, Inc. (NYSE:DK) is the most popular stock in this table, registering 30 hedge fund positions. On the other hand Matador Resources Co (NYSE:MTDR) is the least popular one. Selective Insurance Group (NASDAQ:SIGI) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DK might be a better candidate to consider for a long position.
