Is Joy Global Inc. (NYSE:JOY) a marvelous investment right now? The smart money is getting less bullish. The number of bullish hedge fund positions were cut by 3 recently.
In the eyes of most investors, hedge funds are viewed as underperforming, old investment vehicles of the past. While there are greater than 8000 funds with their doors open at the moment, we hone in on the masters of this group, about 450 funds. It is widely believed that this group has its hands on the lion’s share of all hedge funds’ total capital, and by keeping an eye on their best investments, we have formulated a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 topped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Equally as important, optimistic insider trading sentiment is another way to parse down the world of equities. As the old adage goes: there are many reasons for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this strategy if shareholders understand what to do (learn more here).
Consequently, we’re going to take a glance at the key action encompassing Joy Global Inc. (NYSE:JOY).
How have hedgies been trading Joy Global Inc. (NYSE:JOY)?
Heading into 2013, a total of 28 of the hedge funds we track were long in this stock, a change of -10% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Jim Simons’s Renaissance Technologies had the largest position in Joy Global Inc. (NYSE:JOY), worth close to $46 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Coatue Management, managed by Philippe Laffont, which held a $37 million position; 6.4% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management and Yale M. Fergang and Robert W. Medway’s Royal Capital.
Judging by the fact that Joy Global Inc. (NYSE:JOY) has faced a declination in interest from the smart money, we can see that there is a sect of hedge funds that elected to cut their entire stakes at the end of the year. It’s worth mentioning that Alexander Roepers’ Atlantic Investment Management said goodbye to the biggest investment of all the hedgies we key on, comprising an estimated $191 million in stock., and George Soros of Soros Fund Management was right behind this move, as the fund cut about $9 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 3 funds at the end of the year.
Insider trading activity in Joy Global Inc. (NYSE:JOY)
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the last half-year time frame, Joy Global Inc. (NYSE:JOY) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey’s studies, retail investors must always watch hedge fund and insider trading sentiment, and Joy Global Inc. (NYSE:JOY) is an important part of this process.
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