Hedge Funds Are Buying Joy Global Inc. (JOY)

Joy Global Inc. (NYSE:JOY) shareholders have witnessed an increase in hedge fund interest lately.

In the 21st century investor’s toolkit, there are a multitude of gauges shareholders can use to track their holdings. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can outpace the S&P 500 by a superb amount (see just how much).

Equally as important, optimistic insider trading activity is a second way to parse down the stock market universe. Just as you’d expect, there are a variety of motivations for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this method if “monkeys” understand what to do (learn more here).

Keeping this in mind, let’s take a gander at the recent action surrounding Joy Global Inc. (NYSE:JOY).

How have hedgies been trading Joy Global Inc. (NYSE:JOY)?

In preparation for this quarter, a total of 31 of the hedge funds we track were bullish in this stock, a change of 7% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings substantially.

Of the funds we track, David Cohen and Harold Levy’s Iridian Asset Management had the most valuable position in Joy Global Inc. (NYSE:JOY), worth close to $80.7 million, accounting for 1.2% of its total 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $28.2 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Philippe Laffont’s Coatue Management, Rob Butts and Josh Clark’s Southpoint Capital Advisors and Ken Griffin’s Citadel Investment Group.

Now, key money managers were leading the bulls’ herd. Iridian Asset Management, managed by David Cohen and Harold Levy, created the most outsized position in Joy Global Inc. (NYSE:JOY). Iridian Asset Management had 80.7 million invested in the company at the end of the quarter. Rob Butts and Josh Clark’s Southpoint Capital Advisors also initiated a $25.6 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Joel Greenblatt’s Gotham Asset Management, and David Keidan’s Buckingham Capital Management.

What do corporate executives and insiders think about Joy Global Inc. (NYSE:JOY)?

Insider buying is particularly usable when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time frame, Joy Global Inc. (NYSE:JOY) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Joy Global Inc. (NYSE:JOY). These stocks are Deere & Company (NYSE:DE), Manitowoc Company, Inc. (NYSE:MTW), Terex Corporation (NYSE:TEX), CNH Global NV (ADR) (NYSE:CNH), and AGCO Corporation (NYSE:AGCO). This group of stocks are the members of the farm & construction machinery industry and their market caps match JOY’s market cap.