Top Insider Trades: Ares Corporate Opportunities Fund, Ontario Teachers Pension Fund Shed GNC

By Jonathan Moreland  NOV 15, 2012 9:22 AM

Genomic Health director makes open market buy.

 


In a victory for common sense, the trading behavior of company executives, directors, and large shareholders in the stocks of firms they're registered "insiders" at have been proven profitable to monitor by both academic studies and (more importantly) the experience of your fellow professional investors.

Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Wednesday, November 14, 2012 as ranked by dollar value.

Please note, however, that these are factual lists, not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.

The two funds which acquired GNC (NYSE:GNC) in March 2011 are continuing to cash out of their investment. The Ares Corporate Opportunities Fund sold $363 million worth of the health supplement retail chain, according to SEC documents, while the Ontario Teachers Pension Fund sold $231 million. Since April 2011, Ares has sold a nearly $1.2 billion of GNC stock. Over the same time period, the Ontario Teachers Pension Fund has sold $1.35 billion. Both funds are known for taking on opportunistic and controlling investments.

Felix Baker, who was elected a director of Genomic Health (NADSAQ:GHDX) in August, purchased $25.7 million worth of stock in the molecular diagnostics company. The purchase was made on the open market. Mallika Srinivasan continues to purchase shares of farm equipment maker AGCO (NYSE:AGCO) where she is a director. Srinivasan's most recent purchase has a dollar value of $6.9 million.

At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.


Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes


Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes

Editor's note: Jonathan Moreland is the founder of Insider Insights and author of "Profit From Legal Insider Trading."
No positions in stocks mentioned.