Fuel Systems Solutions, Inc. (NASDAQ:FSYS) was in 4 hedge funds’ portfolio at the end of December. FSYS investors should pay attention to a decrease in hedge fund sentiment recently. There were 5 hedge funds in our database with FSYS holdings at the end of the previous quarter.
At the moment, there are tons of indicators market participants can use to monitor publicly traded companies. A pair of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outpace the S&P 500 by a superb amount (see just how much).
Equally as beneficial, bullish insider trading activity is another way to parse down the investments you’re interested in. As the old adage goes: there are plenty of reasons for an insider to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this method if “monkeys” understand what to do (learn more here).
With these “truths” under our belt, we’re going to take a look at the key action encompassing Fuel Systems Solutions, Inc. (NASDAQ:FSYS).
How are hedge funds trading Fuel Systems Solutions, Inc. (NASDAQ:FSYS)?
Heading into 2013, a total of 4 of the hedge funds we track were bullish in this stock, a change of -20% from the third quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes substantially.
Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in Fuel Systems Solutions, Inc. (NASDAQ:FSYS). Royce & Associates has a $12.1 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Farallon Capital, managed by Thomas Steyer, which held a $7.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Ken Griffin’s Citadel Investment Group.
Seeing as Fuel Systems Solutions, Inc. (NASDAQ:FSYS) has experienced a declination in interest from the smart money, it’s safe to say that there exists a select few money managers that elected to cut their full holdings in Q4. Interestingly, Ken Fisher’s Fisher Asset Management said goodbye to the largest investment of all the hedgies we monitor, totaling close to $21.5 million in stock. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds in Q4.
How are insiders trading Fuel Systems Solutions, Inc. (NASDAQ:FSYS)?
Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Fuel Systems Solutions, Inc. (NASDAQ:FSYS) has seen 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Fuel Systems Solutions, Inc. (NASDAQ:FSYS). These stocks are Superior Industries International Inc. (NYSE:SUP), Stoneridge, Inc. (NYSE:SRI), Meritor Inc (NYSE:MTOR), Modine Manufacturing Co. (NYSE:MOD), and Douglas Dynamics Inc (NYSE:PLOW). This group of stocks are in the auto parts industry and their market caps resemble FSYS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Superior Industries International Inc. (NYSE:SUP) | 10 | 0 | 4 |
| Stoneridge, Inc. (NYSE:SRI) | 8 | 2 | 0 |
| Meritor Inc (NYSE:MTOR) | 20 | 0 | 6 |
| Modine Manufacturing Co. (NYSE:MOD) | 6 | 0 | 0 |
| Douglas Dynamics Inc (NYSE:PLOW) | 6 | 0 | 5 |
With the results exhibited by Insider Monkey’s studies, everyday investors should always monitor hedge fund and insider trading activity, and Fuel Systems Solutions, Inc. (NASDAQ:FSYS) applies perfectly to this mantra.
