Is American Capital Mortgage Investment Crp (NASDAQ:MTGE) a good investment today? Hedge funds are getting more bullish. The number of bullish hedge fund positions went up by 2 recently.
At the moment, there are a multitude of metrics market participants can use to track publicly traded companies. Some of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can beat their index-focused peers by a solid margin (see just how much).
Equally as key, optimistic insider trading sentiment is a second way to parse down the world of equities. Just as you’d expect, there are plenty of incentives for an insider to sell shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the useful potential of this method if you know where to look (learn more here).
Keeping this in mind, let’s take a gander at the latest action regarding American Capital Mortgage Investment Crp (NASDAQ:MTGE).
How are hedge funds trading American Capital Mortgage Investment Crp (NASDAQ:MTGE)?
Heading into 2013, a total of 12 of the hedge funds we track held long positions in this stock, a change of 20% from the previous quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes considerably.
When looking at the hedgies we track, SAB Capital Management, managed by Brian Jackelow, holds the most valuable position in American Capital Mortgage Investment Crp (NASDAQ:MTGE). SAB Capital Management has a $58 million position in the stock, comprising 8.5% of its 13F portfolio. On SAB Capital Management’s heels is Pine River Capital Management, managed by Brian Taylor, which held a $36 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co, James Melcher’s Balestra and Andy Redleaf’s Whitebox Advisors.
As one would reasonably expect, specific money managers have jumped into American Capital Mortgage Investment Crp (NASDAQ:MTGE) headfirst. Pine River Capital Management, managed by Brian Taylor, initiated the most outsized position in American Capital Mortgage Investment Crp (NASDAQ:MTGE). Pine River Capital Management had 36 million invested in the company at the end of the quarter. James Melcher’s Balestra also made a $10 million investment in the stock during the quarter. The other funds with brand new MTGE positions are Jim Simons’s Renaissance Technologies, Jacob Gottlieb’s Visium Asset Management, and Steven Cohen’s SAC Capital Advisors.
Insider trading activity in American Capital Mortgage Investment Crp (NASDAQ:MTGE)
Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time period, American Capital Mortgage Investment Crp (NASDAQ:MTGE) has experienced 5 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to American Capital Mortgage Investment Crp (NASDAQ:MTGE). These stocks are PS Business Parks Inc (NYSE:PSB), Capstead Mortgage Corporation (NYSE:CMO), Redwood Trust, Inc. (NYSE:RWT), Colony Financial Inc (NYSE:CLNY), and Spirit Realty Capital Inc (NYSE:SRC). This group of stocks belong to the reit – diversified industry and their market caps resemble MTGE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| PS Business Parks Inc (NYSE:PSB) | 12 | 0 | 5 |
| Capstead Mortgage Corporation (NYSE:CMO) | 11 | 0 | 1 |
| Redwood Trust, Inc. (NYSE:RWT) | 9 | 0 | 0 |
| Colony Financial Inc (NYSE:CLNY) | 16 | 0 | 6 |
| Spirit Realty Capital Inc (NYSE:SRC) | 17 | 0 | 0 |
With the results exhibited by the aforementioned strategies, retail investors must always watch hedge fund and insider trading activity, and American Capital Mortgage Investment Crp (NASDAQ:MTGE) is no exception.
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