Insider Monkey – In the eyes of most traders, hedge funds are perceived as slow, outdated investment tools of the past. While there are greater than 8000 funds in operation at present, we at Insider Monkey choose to focus on the leaders of this group, around 450 funds. It is estimated that this group has its hands on the lion’s share of all hedge funds’ total asset base, and by keeping an eye on their highest performing equity investments, we have deciphered a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).
Equally as important, positive insider trading activity is another way to break down the marketplace. Obviously, there are plenty of incentives for an executive to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this strategy if shareholders know what to do (learn more here).
With all of this in mind, it’s important to take a gander at the recent action surrounding Alcatel Lucent SA.