Capstone Turbine Corporation (CPST), Radian Group Inc (RDN), Walter Energy, Inc. (WLT): Here’s What This Respected 833% Gainer Has Been Buying

Royce & Associates reduced its stake in lots of companies, including Radian Group Inc (NYSE:RDN). Mortgage insurer Radian Group Inc (NYSE:RDN) has been one of the most popular stocks among hedge funds — for good reason, apparently, as it has nearly quintupled in value over the past year. The recovering housing market is helping Radian Group Inc (NYSE:RDN), along with tighter lending rules, likely to lead to greater need for its coverage. Its recently reported second quarter featured losses narrowing, and a 60% increase in newly written mortgage insurance. Delinquent loans are a risk for Radian Group Inc (NYSE:RDN), as is strong competition. In July, its number of delinquent loans dropped a bit.

Finally, Royce’s biggest closed positions included Magellan Midstream Partners and Belo. Other closed positions of interest include Walter Energy, Inc. (NYSE:WLT). Walter Energy, Inc. (NYSE:WLT) is a pure play in metallurgical coal, needed by the steel industry, among other things. But demand and pricing for coal has been weak lately, and Walter Energy, Inc. (NYSE:WLT)’s stock is down some 72% over the past year, partly as a reaction to it slashing its dividend by 92% a few months ago (to help it address debt). There seem to be few catalysts likely to propel the stock in the near future, though a big uptick in manufacturing would help.

We should never blindly copy any investor’s moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. Therefore, 13-F forms can be great places to find intriguing candidates for our portfolios.

The article Here’s What This Respected 833% Gainer Has Been Buying originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, holds no position in any stocks mentioned. The Motley Fool owns shares of InvenSense.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.