To the average investor, there are dozens of methods shareholders can use to track the equity markets. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can beat the S&P 500 by a healthy amount (see just how much).
Equally as crucial, positive insider trading activity is a second way to look at the investments you’re interested in. Just as you’d expect, there are lots of motivations for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this method if “monkeys” know where to look (learn more here).
Furthermore, we’re going to study the latest info surrounding Headwaters Inc (NYSE:HW).
What does the smart money think about Headwaters Inc (NYSE:HW)?
Heading into Q3, a total of 21 of the hedge funds we track were long in this stock, a change of 5% from the first quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were increasing their stakes considerably.
When using filings from the hedgies we track, Archer Capital Management, managed by Eric Edidin and Josh Lobel, holds the largest position in Headwaters Inc (NYSE:HW). Archer Capital Management has a $27.1 million position in the stock, comprising 5% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $18.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Drew Cupps’s Cupps Capital Management, Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management and Cliff Asness’s AQR Capital Management.
With a general bullishness amongst the titans, certain bigger names were breaking ground themselves. Archer Capital Management, managed by Eric Edidin and Josh Lobel, established the biggest position in Headwaters Inc (NYSE:HW). Archer Capital Management had 27.1 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $18.7 million position during the quarter. The other funds with brand new HW positions are Howard Marks’s Oaktree Capital Management, Drew Cupps’s Cupps Capital Management, and Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management.
What have insiders been doing with Headwaters Inc (NYSE:HW)?
Insider buying made by high-level executives is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time frame, Headwaters Inc (NYSE:HW) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Headwaters Inc (NYSE:HW). These stocks are AAON, Inc. (NASDAQ:AAON), Griffon Corporation (NYSE:GFF), Trex Company, Inc. (NYSE:TREX), Apogee Enterprises, Inc. (NASDAQ:APOG), and Universal Forest Products, Inc. (NASDAQ:UFPI). This group of stocks are the members of the general building materials industry and their market caps are closest to HW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| AAON, Inc. (NASDAQ:AAON) | 8 | 0 | 0 |
| Griffon Corporation (NYSE:GFF) | 10 | 0 | 0 |
| Trex Company, Inc. (NYSE:TREX) | 11 | 0 | 0 |
| Apogee Enterprises, Inc. (NASDAQ:APOG) | 11 | 0 | 0 |
| Universal Forest Products, Inc. (NASDAQ:UFPI) | 6 | 0 | 0 |
Using the returns demonstrated by Insider Monkey’s studies, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Headwaters Inc (NYSE:HW) is no exception.
