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Insider Trading Dashboard: Everything you need to know

With the daily news of hedge funds being raided and expert networks being investigated, I wanted to put together a resource sheet for those looking to delve a bit further into the insider trading game.

Research

Decoding Insider Trading (Cohen): This new paper looks at a methodology to isolate insider traders acting on good information from noisy trades.  By looking at individual trades — versus looking at all insider activity — investors can mimic better-performing trades, boosting performance of insider trading strategies.

Law and Economics of Insider Trading: A Comprehesive Primer (Bainbridge) 84 pages of insider trading awesomeness.  This 2001 paper deals with everything from the origins of current laws prohibiting insider trading to defining an insider to making a case for and against regulating insider trading. For a smaller, more concise paper on insider trading, see Bainbridge’s Insider Trading: An Overview

Stock Market Anomalies: What can we learn from repurchases and insider trading (Core, Guay, Richardson, Verdi)

How Informative are Analyst Recommendations and Insider Trading (Hsieh, Ng, and Wang) Evidence points to insider trading and analyst recommendations giving conflicting signals.  This paper documents that and provides theory why this may be the case.

What Insiders Know about Future Earnings and How They Use It: Evidence from Insider Trades (Ke, Huddart, Petroni) Insiders do trade on this stuff up to 2 years before public release.

Do Insider Trades Reflect Superior Knowledge About Future Cash Flow Realizations (Piotroski, Roulstone) Short answer: yes.

Insider Trade Disclosure, Market Efficiency, and Liquidity (Buffa): Policy implications after finding that informational efficiency and liquidity are lower in more transparent markets

Institutional Investors and Insider Trading Profitability (Markarian, Bricker) Insider profits are inversely related to presence of institutional ownership.  Hedge funds/mutual funds may provide monitoring effect.

MSM (Mainstream Media) on Insider Trading

WSJ on Insider Trading (sub. req’d)

Bloomberg.com: Insider Trading

Google fastflip on Insider Trading

Tradestreaming on Insider Trading

Dealbreaker’s Insider Trading Fest(ivus)

NYT on Insider Trading

Dealbook on Insider Trading

Books on Insider Trading Strategies

Investment Intelligence from Insider Trading: If this book is the bible of insider trading strategies and research, its author, Professor Seyhun is Moses.  Great research into strategies for following insiders.

Profit from Legal Insider Trading: Invest Today on Tomorrow’s News

The Vital Few vs. the Trivial Many : Invest with the Insiders, Not the Masses

Videos on Insider Trading

  • http://insiderize.com/?p=15 Insider trading research shows insiders are really good | Insiderize

    [...] consistently outperform the markets — some studies saying by as much as 7% (check out my Insider Trading Dashboard for more about this [...]

  • http://insiderize.com/?p=19 new research on insider trading strategies from Harvard’s Cohen | Insiderize

    [...] I devoted an entire chapter in Tradestream to an investing strategy that mimicked insider trading. You can check out my insider trading dashboard. [...]

  • http://insiderize.com/?p=30 Should investors run for the doors when they see an insider hedging? | Insiderize

    [...] I’ve written (in Tradestream the book and on this blog) about the abnormal returns of corporate insiders. Investors following insider moves by following corporate managers’ regulatory filings can capture some of this return. Read more about my Insider Trading Dashboard. [...]

About Tradestreaming

Tradestreaming is a community of investors learning directly from experts. I’m Zack Miller, investor, entrepreneur, and founder of Tradestreaming.com and I literally wrote the book on how to invest in the age of Facebook and Twitter. Tradestreaming is the resource I’ve created to help me become a better investor.  I believe it will help you … Continue Reading