Alexander & Baldwin Holdings Inc (MATX): Are Hedge Funds Right About This Stock?

Is Alexander & Baldwin Holdings Inc (NYSE:MATX) going to take off soon? Hedge funds are becoming less hopeful. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience

In today’s marketplace, there are dozens of gauges shareholders can use to analyze Mr. Market. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can outpace the broader indices by a very impressive margin (see just how much).

Just as beneficial, bullish insider trading sentiment is a second way to break down the marketplace. There are a number of reasons for a bullish insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this strategy if investors understand where to look (learn more here).

Now, it’s important to take a look at the latest action surrounding Alexander & Baldwin Holdings Inc (NYSE:MATX).

Hedge fund activity in Alexander & Baldwin Holdings Inc (NYSE:MATX)

In preparation for this quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes considerably.

According to our comprehensive database, Pershing Square, managed by Bill Ackman, holds the most valuable position in Alexander & Baldwin Holdings Inc (NYSE:MATX). Pershing Square has a $74.6 million position in the stock, comprising 0.7% of its 13F portfolio. On Pershing Square’s heels is Royce & Associates, managed by Chuck Royce, which held a $12.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Michael Doheny’s Freshford Capital Management, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.

Seeing as Alexander & Baldwin Holdings Inc (NYSE:MATX) has witnessed bearish sentiment from the smart money, it’s easy to see that there were a few hedge funds that elected to cut their entire stakes last quarter. It’s worth mentioning that Richard McGuire’s Marcato Capital Management dumped the largest position of the 450+ funds we track, totaling close to $14.4 million in stock.. Mike Vranos’s fund, Ellington, also sold off its stock, about $0.5 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Insider trading activity in Alexander & Baldwin Holdings Inc (NYSE:MATX)

Insider buying is most useful when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Alexander & Baldwin Holdings Inc (NYSE:MATX) has seen 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Alexander & Baldwin Holdings Inc (NYSE:MATX). These stocks are DryShips Inc. (NASDAQ:DRYS), Navios Maritime Partners L.P. (NYSE:NMM), Diana Shipping Inc. (NYSE:DSX), Costamare Inc (NYSE:CMRE), and Scorpio Tankers Inc. (NYSE:STNG). This group of stocks are the members of the shipping industry and their market caps are closest to MATX’s market cap.

With the returns demonstrated by the aforementioned tactics, everyday investors must always watch hedge fund and insider trading sentiment, and Alexander & Baldwin Holdings Inc (NYSE:MATX) applies perfectly to this mantra.

Click here to learn why you should track hedge funds