Carlisle Companies, Inc. (CSL): Insiders Aren’t Crazy About It But Hedge Funds Love It

In the eyes of many investors, hedge funds are assumed to be delayed, old investment tools of an era lost to time. Although there are In excess of 8,000 hedge funds trading in present day, this site looks at the moguls of this club, close to 525 funds. Analysts calculate that this group oversees the majority of all hedge funds’ total assets, and by monitoring their highest quality stock picks, we’ve found a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).

Equally as key, bullish insider trading activity is another way to analyze the investments you’re interested in. As the old adage goes: there are plenty of stimuli for a corporate insider to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this strategy if “monkeys” know where to look (learn more here).

Furthermore, let’s study the newest info surrounding Carlisle Companies, Inc. (NYSE:CSL).

Hedge fund activity in Carlisle Companies, Inc. (NYSE:CSL)

At Q2’s end, a total of 22 of the hedge funds we track were bullish in this stock, a change of 29% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings meaningfully.

Out of the hedge funds we follow, Chuck Royce’s Royce & Associates had the biggest position in Carlisle Companies, Inc. (NYSE:CSL), worth close to $49.5 million, comprising 0.2% of its total 13F portfolio. The second largest stake is held by David Dreman of Dreman Value Management, with a $23.1 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Matthew Lindenbaum’s Basswood Capital, Israel Englander’s Millennium Management and Jim Simons’s Renaissance Technologies.

As one would understandably expect, certain money managers have been driving this bullishness. Royce & Associates, managed by Chuck Royce, created the most outsized position in Carlisle Companies, Inc. (NYSE:CSL). Royce & Associates had 49.5 million invested in the company at the end of the quarter. David Dreman’s Dreman Value Management also initiated a $23.1 million position during the quarter. The other funds with brand new CSL positions are Matthew Lindenbaum’s Basswood Capital, Israel Englander’s Millennium Management, and Jim Simons’s Renaissance Technologies.

Insider trading activity in Carlisle Companies, Inc. (NYSE:CSL)

Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last half-year time frame, Carlisle Companies, Inc. (NYSE:CSL) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Carlisle Companies, Inc. (NYSE:CSL). These stocks are Tredegar Corporation (NYSE:TG), Titan International Inc (NYSE:TWI), Cooper Tire & Rubber Company (NYSE:CTB), Berry Plastics Group Inc (NYSE:BERY), and The Goodyear Tire & Rubber Company (NASDAQ:GT). This group of stocks are in the rubber & plastics industry and their market caps resemble CSL’s market cap.

Using the returns demonstrated by Insider Monkey’s research, regular investors must always pay attention to hedge fund and insider trading activity, and Carlisle Companies, Inc. (NYSE:CSL) applies perfectly to this mantra.

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