What’s a smart Homex Development Corp. (ADR) (NYSE:HXM) investor to do?
In the 21st century investor’s toolkit, there are dozens of metrics shareholders can use to monitor Mr. Market. A couple of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outclass their index-focused peers by a solid margin (see just how much).
Just as key, optimistic insider trading sentiment is another way to analyze the stock market universe. There are plenty of reasons for an executive to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this tactic if investors understand where to look (learn more here).
Keeping this in mind, let’s examine the recent info for Homex Development Corp. (ADR) (NYSE:HXM).
What have hedge funds been doing with Homex Development Corp. (ADR) (NYSE:HXM)?
At Q2’s end, a total of 6 of the hedge funds we track held long positions in this stock, a change of 20% from the first quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were upping their holdings considerably.
According to our 13F database, Luxor Capital Group, managed by Christian Leone, holds the most valuable position in Homex Development Corp. (ADR) (NYSE:HXM). Luxor Capital Group has a $2 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $1.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Ken Griffin’s Citadel Investment Group, Martin Whitman’s Third Avenue Management and Matthew Hulsizer’s PEAK6 Capital Management.
As aggregate interest spiked, particular hedge funds have jumped into Homex Development Corp. (ADR) (NYSE:HXM) headfirst. Luxor Capital Group, managed by Christian Leone, initiated the biggest position in Homex Development Corp. (ADR) (NYSE:HXM). Luxor Capital Group had 2 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $1.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Martin Whitman’s Third Avenue Management, and Matthew Hulsizer’s PEAK6 Capital Management.
What do corporate executives and insiders think about Homex Development Corp. (ADR) (NYSE:HXM)?
Insider buying made by high-level executives is particularly usable when the company in focus has seen transactions within the past half-year. Over the last six-month time frame, Homex Development Corp. (ADR) (NYSE:HXM) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Homex Development Corp. (ADR) (NYSE:HXM). These stocks are Agree Realty Corporation (NYSE:ADC), Tejon Ranch Company (NYSE:TRC), E-House (China) Holdings Limited (ADR) (NYSE:EJ), Campus Crest Communities Inc (NYSE:CCG), and Alto Palermo S.A. (ADR) (NASDAQ:APSA). This group of stocks are the members of the property management industry and their market caps are closest to HXM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Agree Realty Corporation (NYSE:ADC) | 7 | 0 | 0 |
| Tejon Ranch Company (NYSE:TRC) | 7 | 0 | 0 |
| E-House (China) Holdings Limited (ADR) (NYSE:EJ) | 8 | 0 | 0 |
| Campus Crest Communities Inc (NYSE:CCG) | 9 | 0 | 0 |
| Alto Palermo S.A. (ADR) (NASDAQ:APSA) | 0 | 0 |
Using the results explained by our research, regular investors should always pay attention to hedge fund and insider trading activity, and Homex Development Corp. (ADR) (NYSE:HXM) shareholders fit into this picture quite nicely.
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Homex Development Corp. (ADR) (HXM): Here’s What You Need To Know
