A team of analysts led by Bret Jensen, Chief Investment Strategist at Simplified Asset Management, focuses on identifying small and mid-cap stocks that have recently attracted insider purchases. This initiative is part of their investing group, The Insiders Forum, which aims to maintain a portfolio of 12-25 carefully selected stocks across various sectors. The overarching goal is to outperform the Russell 2000 index over the long term.
The Insiders Forum’s investment strategy hinges on evaluating stocks that are considered attractively valued while also showing significant interest from company insiders. Such insider activity is often viewed as a positive indicator of potential future performance.
Jensen emphasizes transparency regarding connections to the stocks discussed, stating that he and his team hold no positions or plans to invest in the companies mentioned in their analysis within the next 72 hours. This declaration underlines their commitment to impartiality in their investment assessments.
The piece highlights that past performance is not indicative of future results and clarifies that Seeking Alpha, the platform for this analysis, does not serve as a licensed securities dealer, broker, or investment adviser. As an organization, Seeking Alpha features contributions from both professional and individual investors, with diverse opinions that may not reflect the platform’s overall stance.
Why this story matters:
- Highlights insider buying as a potential indicator of future stock performance.
Key takeaway:
- The Insiders Forum utilizes insider purchasing trends as a core component of its investment strategy.
Opposing viewpoint:
- Some analysts argue that insider buying does not guarantee stock performance and suggest that other market factors should be considered.
