To most traders, hedge funds are assumed to be worthless, old financial vehicles of the past. While there are greater than 8000 funds trading at present, we at Insider Monkey hone in on the top tier of this club, close to 450 funds. Most estimates calculate that this group controls most of the smart money’s total capital, and by paying attention to their highest performing picks, we have spotted a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum 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 beaten the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).
Equally as key, bullish insider trading activity is a second way to parse down the world of equities. Obviously, there are many incentives for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the useful potential of this tactic if you know where to look (learn more here).
Keeping this in mind, it’s important to take a gander at the recent action regarding Commercial Vehicle Group, Inc. (NASDAQ:CVGI).
What does the smart money think about Commercial Vehicle Group, Inc. (NASDAQ:CVGI)?
In preparation for this quarter, a total of 6 of the hedge funds we track were long in this stock, a change of -25% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings considerably.
According to our comprehensive database, Alexander Medina Seaver’s Stadium Capital Management had the largest position in Commercial Vehicle Group, Inc. (NASDAQ:CVGI), worth close to $22.6 million, accounting for 5.1% of its total 13F portfolio. The second largest stake is held by York Capital Management, managed by James Dinan, which held a $17.5 million position; 0.4% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Chuck Royce’s Royce & Associates, Joel Greenblatt’s Gotham Asset Management and D. E. Shaw’s D E Shaw.
Due to the fact that Commercial Vehicle Group, Inc. (NASDAQ:CVGI) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few fund managers that slashed their entire stakes heading into Q2. Intriguingly, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors cut the largest stake of the 450+ funds we watch, totaling close to $1.1 million in stock.. Richard Driehaus’s fund, Driehaus Capital, also cut its stock, about $0.5 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds heading into Q2.
What have insiders been doing with Commercial Vehicle Group, Inc. (NASDAQ:CVGI)?
Insider buying is at its handiest when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Commercial Vehicle Group, Inc. (NASDAQ:CVGI) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
With the results shown by our time-tested strategies, everyday investors should always pay attention to hedge fund and insider trading activity, and Commercial Vehicle Group, Inc. (NASDAQ:CVGI) applies perfectly to this mantra.
