Should Comfort Systems USA, Inc. (NYSE:FIX) investors track the following data?
To many market players, hedge funds are viewed as bloated, old financial tools of a forgotten age. Although there are more than 8,000 hedge funds with their doors open today, Insider Monkey looks at the upper echelon of this club, around 525 funds. It is widely held that this group controls the lion’s share of the hedge fund industry’s total capital, and by tracking their highest quality investments, we’ve deciphered a few investment strategies that have historically outstripped the S&P 500. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started 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 (explore the details and some picks here).
Equally as necessary, bullish insider trading sentiment is another way to look at the investments you’re interested in. As the old adage goes: there are a variety of motivations for a bullish insider to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this tactic if investors know what to do (learn more here).
What’s more, we’re going to discuss the recent info for Comfort Systems USA, Inc. (NYSE:FIX).
How have hedgies been trading Comfort Systems USA, Inc. (NYSE:FIX)?
Heading into Q3, a total of 9 of the hedge funds we track were bullish in this stock, a change of 29% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings considerably.
According to our 13F database, Royce & Associates, managed by Chuck Royce, holds the largest position in Comfort Systems USA, Inc. (NYSE:FIX). Royce & Associates has a $12.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Joel Greenblatt of Gotham Asset Management, with a $1.3 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management and Matthew Hulsizer’s PEAK6 Capital Management.
As industrywide interest increased, specific money managers have jumped into Comfort Systems USA, Inc. (NYSE:FIX) headfirst. Royce & Associates, managed by Chuck Royce, established the most valuable position in Comfort Systems USA, Inc. (NYSE:FIX). Royce & Associates had 12.2 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also made a $1.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management, and Matthew Hulsizer’s PEAK6 Capital Management.
Insider trading activity in Comfort Systems USA, Inc. (NYSE:FIX)
Legal insider trading, particularly when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time frame, Comfort Systems USA, Inc. (NYSE:FIX) has experienced zero unique insiders buying, 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 Comfort Systems USA, Inc. (NYSE:FIX). These stocks are Quanta Services Inc (NYSE:PWR), Emcor Group Inc (NYSE:EME), Integrated Electrical Services, Inc. (NASDAQ:IESC), Pike Electric Corporation (NYSE:PIKE), and MYR Group Inc (NASDAQ:MYRG). All of these stocks are in the general contractors industry and their market caps resemble FIX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Quanta Services Inc (NYSE:PWR) | 33 | 0 | 0 |
| Emcor Group Inc (NYSE:EME) | 23 | 0 | 0 |
| Integrated Electrical Services, Inc. (NASDAQ:IESC) | 4 | 0 | 0 |
| Pike Electric Corporation (NYSE:PIKE) | 23 | 0 | 0 |
| MYR Group Inc (NASDAQ:MYRG) | 14 | 0 | 0 |
Using the returns demonstrated by Insider Monkey’s studies, average investors must always watch hedge fund and insider trading activity, and Comfort Systems USA, Inc. (NYSE:FIX) applies perfectly to this mantra.
