Insider Monkey – Is The Hershey Company (NYSE:HSY) the right pick for your portfolio? Hedge funds are taking a pessimistic view. The number of long hedge fund positions were trimmed by 2 in recent months.
If you’d ask most stock holders, hedge funds are perceived as slow, outdated investment tools of the past. While there are greater than 8000 funds trading today, we at Insider Monkey look at the elite of this club, about 450 funds. Most estimates calculate that this group controls most of the hedge fund industry’s total asset base, and by keeping an eye on their best investments, we have identified a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year 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 outpaced the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).
Equally as beneficial, bullish insider trading sentiment is another way to break down the stock market universe. Obviously, there are plenty of reasons for an insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the impressive potential of this method if you know what to do (learn more here).
With all of this in mind, we’re going to take a peek at the recent action regarding The Hershey Company (NYSE:HSY).