The Insider’s Fund – Insider Report 

$KKR, $AON, $KRG, $OSIS, $BCO, $ATNX, $DAL, $CELG, $DECK

In this report, we examine stocks that C-level officers and directors bought and sold ending the week of September 22nd, 2017.

Insiders sell stock for many reasons, but they generally buy for just one – to make money.  As a standard, we only look at material amounts of money, $100 thousand or more, as anything less could just be window dressing.

The bar is different with selling, because the natural state of management is to be sellers. This is because most companies provide significant amounts of management compensation packages as stock. Therefore, with selling, we analyze for unusual patterns, such as insiders selling 25 percent or more of their holdings or multiple insiders selling near 52 week lows.

Another red flag is large planned sale programs that start without warning. We generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and not the SMART money we are trying to go to school on.  Although this info is available for free from the SEC’s Web site , Edgar, we subscribe to the Washington Service as they provide a way to manage and make sense of the vast realms of data.

To learn more about our strategy, visit our website at The Insiders Fund. We welcome your comments on our analysis. We may own positions, long or short, in any of these names and are under no obligation to disclose that.  This week, we are omitting insider sales, in part because we don’t have the time, but also it is increasingly difficult to make money on the short side in this bull market.

Buying

KKR  KKR: We normally don’t talk about what hedge funds are doing but ValueAct Holdings has such a good longer term track record, we do pay attention to their moves. It appears they financed some of the $31.2 million purchase of KKR with some sales of their very successful investment in Microsoft stock.

AON Aon: Chairman of the Board, Lester Knight, stepped up and about $8.3 million of stock at an average price of $138.42 on Feb. 6, 2018. This markedly increased his holdings in the insurer by 17.5 percent.  Knight’s move showed conviction

Kite Realty Group Trust KRG: Director purchased 100,000 shares at $15.06 between Feb. 5 – 6, 2018, increasing his holdings by 156.4 percent.

OSIS Systems OSI: Director Meyer Luskin bought $1.1 million of OSI on 2/6/18, paying an average price of $56.79.  This increased his holdings by 106.3 percent.  This one bears looking into.

Brinks Co. BCO: CEO Peltz added to his already aggressive purchasing by buying 10,000 more shares at $72.91 on Feb. 8, 2018, after Brinks sold off aggressively on their quarterly earnings slight miss. The CFO also purchased shares causing a sharp rally Friday in the name.  We are already fully invested in this name so we won’t be adding to it.

Athenex Inc ATNX: Directors Fok, Lau Johnson, and Wu stepped up and bought over $1 million in stock at prices from $13.64-$14.36 between Feb. 7 & 8, 2018.

Delta DAL: Director Mattson added to his holdings with a purchase of $519k more Delta on the market route.

Celgene Corp CELG: Chairman Alles mark J purchased 3,260 shares at $91 for a total of $299.6 thousand.

 

Selling

Deckers Outdoor Corp DECK  Six insiders took advantage of record high prices in Deckers to unload $3.7 million worth of stock.  The combined sales are the largest monthly selling total since August 2016. They have a good timing record.