Interesting article for me as we have a similar investment style. They have a long short insider fund as well which we have significantly outperformed. Their long only fund is smoking it this year as you would expect. It’s not doing any better than the market when you account for sales charges though.
Insider Buying: These Stocks Are CEO FavoritesBy GRACE L. WILLIAMS
Portfolio manager David Miller buys only companies whose top execs put their own money on the line.ArticleComments 5EmailPrintReprints smallerLargerWhile many fund managers use complex strategies to try to outsmart the market, David Miller of Catalyst Funds takes a different approach. Miller watches the people with the best information about a given company — the top executives — and does what they do.Enlarge ImageName: David Miller Age: 33 Title: Senior portfolio manager Education: B.S. in economics, Wharton School, University of Pennsylvania; M.B.A. in finance, University of Michigan Hobbies: Skiing, traveling, golfThe term “insider trading” conjures up the headline-making scandals, such as the accusations dogging SAC Capital. But executives legally buy and sell shares of their companies all the time, and academic studies suggest that insiders generally beat the market over time. Miller is certain they can. Hes so certain that he created four funds based on the strategy, including the Catalyst Insider Buying Fund ticker: INSAX, a large-cap fund that looks for big name companies where the insiders are bullish. See Barrons.coms Focus on Funds Blog.
via Insider Buying: These Stocks Are CEO Favorites – Barrons.com.