Do not invest more money than you can afford to lose.
Signia Capital Management, an investment company, has bought additional 31 251 shares in the second-largest forex broker in the US – Gain Capital (NYSE:GCAP), shows a recent quarterly report with the US Securities and Exchange Commission (SEC).
With the new addition, Signia now owns a total of 323 147 shares, valued at a little over $2.22 million. Its shares in Gain Capital make up around 6.52% of Signia’s portfolio.
On Friday, May 6, the forex broker’s shares closed at $6.9 per share and the company had a market capitalization of $341.46 million.
According to the website The Market Digest, while Signia is buying, other hedge funds are selling their shares in Gain Capital in the past quarter. Among them are Wedge Capital Management L L Pnc, which sold all of its 75 200 shares, valued at $518 880 and Rockefeller Financial Services Inc, which also offloaded its entire stake in the forex broker, valued at $301 359. So did Strs Ohio, with its 55 600 shares and Boston Advisors who sold all their 565 380 shares for a little over $3.9 million.
Senior managers of Gain Capital are also selling some of their shares in the company, albeit mostly for tax reasons. Most recently Samantha Roady, Chief commercial officer of the forex broker sold 20 000 of her shares at $7 the piece and pocketed $140 000.
Meanwhile, Gain Capital reported that its April trading volumes are continuing its downward trend. At the same time, however in Q1 2016 its net income rose 52.7% over the year.
Gain Capital is the second-largest US forex and CFD broker, operating the brands Forex.com, City Index, the multi-dealer foreign exchange trading platform for institutions and futures group GTX, as well as the advisory CFD business Galvan and futures provider, Daniels Trading. It also offers white-label solutions for online forex trading companies.
Gain Capital was founded in 1999 and went public in 2010. It is based in the US, but serves customers from more than 140 countries and has offices in London, Sydney, Tokyo, Seoul, Singapore and Hong Kong.
Signia Capital Management LLC is an employee owned investment manager. It primarily provides its services to public and private pension funds, pension and profit sharing plans, and investment companies, but also serves individuals such as high net worth individuals, corporations, trusts, and state or municipal government entities. The firm invests in the public equity markets of the United States. It primarily invests in value stocks of small-cap and mid-cap companies.