In the financial world, there are dozens of indicators shareholders can use to track Mr. Market. A pair of the most useful 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 investment managers can outperform the S&P 500 by a healthy amount (see just how much).
Just as key, optimistic insider trading activity is another way to parse down the marketplace. As the old adage goes: there are a number of incentives for a bullish insider to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this strategy if piggybackers know what to do (learn more here).
With these “truths” under our belt, let’s take a glance at the latest action regarding Snap-on Incorporated (NYSE:SNA).
Hedge fund activity in Snap-on Incorporated (NYSE:SNA)
Heading into 2013, a total of 19 of the hedge funds we track were long in this stock, a change of 27% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially.
According to our comprehensive database, Gates Capital Management, managed by Jeffrey Gates, holds the biggest position in Snap-on Incorporated (NYSE:SNA). Gates Capital Management has a $78 million position in the stock, comprising 4.9% of its 13F portfolio. The second largest stake is held by Ariel Investments, managed by John W. Rogers, which held a $70 million position; 0.1% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Robert Joseph Caruso’s Select Equity Group, Phill Gross and Robert Atchinson’s Adage Capital Management and Scott Scher & Michael Prober’s Clovis Capital Management.
Now, some big names were leading the bulls’ herd. SAC Capital Advisors, managed by Steven Cohen, initiated the most valuable position in Snap-on Incorporated (NYSE:SNA). SAC Capital Advisors had 13 million invested in the company at the end of the quarter. David Harding’s Winton Capital Management also initiated a $12 million position during the quarter. The other funds with brand new SNA positions are Bruce Kovner’s Caxton Associates LP, D. E. Shaw’s D E Shaw, and Glenn Russell Dubin’s Highbridge Capital Management.
What do corporate executives and insiders think about Snap-on Incorporated (NYSE:SNA)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Snap-on Incorporated (NYSE:SNA) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).
With the results demonstrated by our studies, everyday investors should always watch hedge fund and insider trading sentiment, and Snap-on Incorporated (NYSE:SNA) is no exception.
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