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Do Insiders Know More Than Market Pundits?

Jul. 25, 2017 4:14 PM ET2 Comments
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The wrong man is not always wrong because of his wrong actions, often he is wrong because of no actions.”  - Amit Kalantri

It would certainly seem so.  The majority of active fund managers continue to under perform their benchmarks which continues to trigger a massive migration to lower cost passive index funds.

Meanwhile, insiders would appear to be compiling a much better track record.  Well, at least judging by the performance of the Insiders Forum portfolio since its launch on June 30th, 2016.  This portfolio consists at any one time of 15 to 20 attractive small and midcap stocks across industries that have recent insider buying.

At market close as of today, the portfolio crossed over the 45% total return milestone (46.46% to be precise) for the first time compared to the 19.48% return over the same time from the Russell 2000 which we use as the portfolio's benchmark.

This is also not the result of leverage.  We actually have over a 15% cash allocation in the portfolio after taking a better than 140% gain in Amicus Therapeutics (FOLD) which went into the portfolio earlier this year.  We will using this 'dry powder' to initiate positions in 3-4 new holdings over the next month or so.

Is every position a winner?  Of course not.   However, as you can see from the chart below; the portfolio has had more winners than losers including several that have more than doubled for subscribers during their time in the portfolio.

To celebrate getting over the 45% 'Hump', we are having a one day Flash Sale that will run through market close tomorrow.  During that time, we will enable 14 day free trials to take the Insiders Forum service for a spin on a risk free basis.  To take advantage of this offer before it expires, please click HERE.  Feel free to read our reviews and I hope to see you on Live Chat in The Insiders Forum during the trading day in the near future.

Thank You and Happy Hunting

Bret Jensen

Founder, Biotech Forum & Insiders Forum

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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