This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Trend Report: 7 Insider and Hedge Fund Stock Picks to Consider

Mary-Lynn Cesar, Kapitall: Insider and hedge fund stock picks don't always overlap, but when they do it makes for an interesting list.

The following stock list is all about the investment habits of others. We're not talking about regular investors — we're focusing on insider and hedge fund stock pickers because they're among the most knowledgable investors out there.

[Read more from Kapitall: Will Drone Stocks Follow Rolls Royce into Shipping?]

Insiders are company employees and have valuable insight into their firm that other investors lack. They also are more familiar than most people with the industry, their competitors, and the demand for their goods and services. When these insiders decide to buy stock based on what they know about a company, their actions are either insider trading (illegal) or insider buying (legal).  

The nature of the information driving the investment marks the difference between the two. Insider trading uses privileged information that has yet to be disclosed while insider buying relies on public information and a strong belief that the company is undervalued.

Insider buying shows that company employees are bullish about the stock's future, so we began today's screen by constructing a universe of stocks with net insider buying in excess of 2% of share float over the past six months.

Next, we took a look at the habits of institutional investors. These investors pool tons of money together, which they then invest in securities and other financial assets. They employ experienced analysts who maintain a comprehensive understanding of the economic landscape and a company's finances. This allows the analysts to evaluate earnings potential and future growth in a way that a regular investor likely can't. Hedge funds, insurance companies, mutual funds, and pension funds are examples of these big money investors.

Therefore, when these investors buy a considerable amount of a company's stock, they also expect the stock to outperform in the future. We screened our list for stocks with significant net institutional purchases over the last quarter representing at least 5% of share float.

We were left with seven insider and hedge fund stock picks on our list.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs