In the 21st century investor’s toolkit, there are tons of methods shareholders can use to watch the equity markets. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can outclass their index-focused peers by a significant margin (see just how much).
Just as important, positive insider trading sentiment is a second way to parse down the stock market universe. As the old adage goes: there are a variety of stimuli for an executive to drop shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the impressive potential of this strategy if shareholders know where to look (learn more here).
Keeping this in mind, we’re going to take a look at the key action regarding Dean Foods Co (NYSE:DF).
How have hedgies been trading Dean Foods Co (NYSE:DF)?
At the end of the first quarter, a total of 38 of the hedge funds we track were long in this stock, a change of 31% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes considerably.
When looking at the hedgies we track, Phill Gross and Robert Atchinson’s Adage Capital Management had the largest position in Dean Foods Co (NYSE:DF), worth close to $76.7 million, comprising 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Sheffield Asset Management, managed by Craig C. Albert, which held a $62.5 million position; the fund has 15.2% of its 13F portfolio invested in the stock. Other peers with similar optimism include James Crichton and Adam Weiss’s Scout Capital Management, Daniel S. Och’s OZ Management and Jonathan Auerbach’s Hound Partners.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Scout Capital Management, managed by James Crichton and Adam Weiss, created the most outsized position in Dean Foods Co (NYSE:DF). Scout Capital Management had 60.7 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also made a $45.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Jonathon Jacobson’s Highfields Capital Management, Frank Brosens’s Taconic Capital, and Martin D. Sass’s MD Sass.
How have insiders been trading Dean Foods Co (NYSE:DF)?
Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time frame, Dean Foods Co (NYSE:DF) has experienced 1 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
With the returns exhibited by Insider Monkey’s tactics, retail investors must always pay attention to hedge fund and insider trading activity, and Dean Foods Co (NYSE:DF) shareholders fit into this picture quite nicely.
