This Metric Says You Are Smart to Sell Scripps Networks Interactive, Inc. (SNI)

Is Scripps Networks Interactive, Inc. (NYSE:SNI) worth your attention right now? Investors who are in the know are getting less optimistic. The number of bullish hedge fund bets went down by 7 in recent months.

According to most market participants, hedge funds are seen as underperforming, old financial vehicles of years past. While there are over 8000 funds with their doors open at the moment, we hone in on the top tier of this club, close to 450 funds. It is widely believed that this group controls the lion’s share of all hedge funds’ total asset base, and by monitoring their top equity investments, we have brought to light a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Equally as key, positive insider trading sentiment is a second way to break down the marketplace. There are a number of incentives for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Many empirical studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).

Consequently, we’re going to take a gander at the latest action surrounding Scripps Networks Interactive, Inc. (NYSE:SNI).

What does the smart money think about Scripps Networks Interactive, Inc. (NYSE:SNI)?

Heading into Q2, a total of 22 of the hedge funds we track were long in this stock, a change of -24% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings substantially.

According to our comprehensive database, Southeastern Asset Management, managed by Mason Hawkins, holds the largest position in Scripps Networks Interactive, Inc. (NYSE:SNI). Southeastern Asset Management has a $157.8 million position in the stock, comprising 0.7% of its 13F portfolio. On Southeastern Asset Management’s heels is John Paulson of Paulson & Co, with a $135.1 million position; 0.8% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Robert Joseph Caruso’s Select Equity Group, Tom Russo’s Gardner Russo & Gardner and Mario Gabelli’s GAMCO Investors.

Since Scripps Networks Interactive, Inc. (NYSE:SNI) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedgies that elected to cut their entire stakes at the end of the first quarter. Interestingly, Matthew Tewksbury’s Stevens Capital Management sold off the largest position of the “upper crust” of funds we track, totaling an estimated $7.4 million in stock.. Murray Stahl’s fund, Horizon Asset Management, also dumped its stock, about $5.8 million worth. These transactions are interesting, as total hedge fund interest was cut by 7 funds at the end of the first quarter.

Insider trading activity in Scripps Networks Interactive, Inc. (NYSE:SNI)

Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the latest half-year time period, Scripps Networks Interactive, Inc. (NYSE:SNI) has seen zero unique insiders buying, and 12 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Scripps Networks Interactive, Inc. (NYSE:SNI). These stocks are CTC Media, Inc. (NASDAQ:CTCM), CBS Corporation (NYSE:CBS), Grupo Televisa SAB (ADR) (NYSE:TV), and Liberty Media Corp (NASDAQ:LMCA). All of these stocks are in the broadcasting – tv industry and their market caps are closest to SNI’s market cap.