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The big shareholder groups in Fortunet e-Commerce Group Limited (HKG:1039) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'

With a market capitalization of HK$788m, Fortunet e-Commerce Group is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about 1039.

See our latest analysis for Fortunet e-Commerce Group

What Does The Institutional Ownership Tell Us About Fortunet e-Commerce Group?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors own 8.8% of Fortunet e-Commerce Group. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Fortunet e-Commerce Group, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Fortunet e-Commerce Group. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Fortunet e-Commerce Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Fortunet e-Commerce Group Limited. Insiders have a HK$325m stake in this HK$788m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.