insider buying and tracking funds

[yadayada]

When do you weigh this heavily? Same goes for when a fund with a v good track record is involved and is buying heavily. I saw a study where on average you would beat the market significantly. My pc  crashed and i lost it tho :( . I will try to find it again. I hear people saying that net net investing will yield a nice return, but i have trouble find 10 or 20 good net nets nowadays. So I wonder just looking for insider buying (or not turning most of their options into cash), or funds with excellent long term performance buying should probably yield at the very least some good ideas? With the latter you want to focus on the smaller ideas probably.

 

Examples are ACW with coliseum capital being involved and holding 20% of their fund in ACW. They started buying like crazy after it dropped that much. Im reading all the 10k's now. Looking at the numbers in 2006 and 07, and at Bain capital involved in this in the 90's this looks v promising.

 

ZINC, with pabrai heavily invested in that. (when looking at large funds, you probably want to focus on their smaller holdings. They hold the most upside, or otherwhise they wouldnt bother with a smaller idea like taht)

 

AMNL, Taft holding 25% there, and increasing his stake and being involved.

 

MYGN, insiders are being compensated mostly in options here and not  turning large amount of shares into cash. I think the principle here is that when tech companies with smart insiders and like 1bn$+ market caps have insiders being that confident you want to take their side on it.

 

I think the key to a insider strategy would be first market beating funds (over the long run) being interested in small ideas and buying heavily. And When it comes to insiders, they need to buy alot, and they need to be smart and competent.

 

Here is the study  :

http://lsvasset.com/pdf/Insider-Trades-Informative.pdf

difference of 10% annually.