Fortune Brands Home & Security Inc (NYSE:FBHS) shareholders have witnessed an increase in support from the world’s most elite money managers of late.
According to most market participants, hedge funds are viewed as underperforming, old investment tools of years past. While there are more than 8000 funds in operation today, we look at the crème de la crème of this club, around 450 funds. It is estimated that this group controls most of the smart money’s total asset base, and by monitoring their best stock picks, we have unsheathed a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year 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 outperformed the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).
Just as key, optimistic insider trading activity is another way to parse down the world of equities. Obviously, there are a number of incentives for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if “monkeys” understand what to do (learn more here).
Consequently, it’s important to take a look at the key action regarding Fortune Brands Home & Security Inc (NYSE:FBHS).
What does the smart money think about Fortune Brands Home & Security Inc (NYSE:FBHS)?
At the end of the fourth quarter, a total of 29 of the hedge funds we track held long positions in this stock, a change of 32% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Mason Capital Management, managed by Kenneth Mario Garschina, holds the largest position in Fortune Brands Home & Security Inc (NYSE:FBHS). Mason Capital Management has a $79 million position in the stock, comprising 1.1% of its 13F portfolio. Coming in second is Tiger Consumer Management, managed by Patrick McCormack, which held a $73 million position; 3.4% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Mario Gabelli’s GAMCO Investors, Richard S. Pzena’s Pzena Investment Management and James Dinan’s York Capital Management.
As one would reasonably expect, key money managers were leading the bulls’ herd. Tiger Consumer Management, managed by Patrick McCormack, established the most valuable position in Fortune Brands Home & Security Inc (NYSE:FBHS). Tiger Consumer Management had 73 million invested in the company at the end of the quarter. Charles Anderson’s Fox Point Capital Management also initiated a $15 million position during the quarter. The other funds with brand new FBHS positions are John Fichthorn’s Dialectic Capital Management, Mariko Gordon’s Daruma Asset Management, and Louis Bacon’s Moore Global Investments.
What do corporate executives and insiders think about Fortune Brands Home & Security Inc (NYSE:FBHS)?
Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time period, Fortune Brands Home & Security Inc (NYSE:FBHS) has experienced 1 unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
With the results demonstrated by our tactics, retail investors should always watch hedge fund and insider trading activity, and Fortune Brands Home & Security Inc (NYSE:FBHS) applies perfectly to this mantra.
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