Hedge Funds Are Buying Monro Muffler Brake Inc (MNRO)

Monro Muffler Brake Inc (NASDAQ:MNRO) has seen an increase in enthusiasm from smart money lately.

In the financial world, there are a multitude of metrics investors can use to analyze stocks. Some of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace the broader indices by a superb margin (see just how much).

Just as important, positive insider trading sentiment is another way to parse down the world of equities. Obviously, there are a variety of motivations for a bullish insider to cut shares of his or her company, but only one, very simple reason why they would buy. Plenty of 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 peek at the recent action surrounding Monro Muffler Brake Inc (NASDAQ:MNRO).

How are hedge funds trading Monro Muffler Brake Inc (NASDAQ:MNRO)?

Heading into Q2, a total of 9 of the hedge funds we track were bullish in this stock, a change of 13% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings meaningfully.

Of the funds we track, Akre Capital Management, managed by Charles Akre, holds the most valuable position in Monro Muffler Brake Inc (NASDAQ:MNRO). Akre Capital Management has a $19.9 million position in the stock, comprising 1.1% of its 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $7.9 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Ken Grossman and Glen Schneider’s SG Capital Management, Mark N. Diker’s Diker Management and Ken Griffin’s Citadel Investment Group.

Now, some big names have been driving this bullishness. SG Capital Management, managed by Ken Grossman and Glen Schneider, initiated the most valuable position in Monro Muffler Brake Inc (NASDAQ:MNRO). SG Capital Management had 4.6 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $2.3 million investment in the stock during the quarter. The other funds with brand new MNRO positions are Israel Englander’s Catapult Capital Management and Israel Englander’s Millennium Management.

What do corporate executives and insiders think about Monro Muffler Brake Inc (NASDAQ:MNRO)?

Insider buying is most useful when the company in focus has seen transactions within the past six months. Over the last six-month time frame, Monro Muffler Brake Inc (NASDAQ:MNRO) has experienced 1 unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Monro Muffler Brake Inc (NASDAQ:MNRO). These stocks are Standard Motor Products, Inc. (NYSE:SMP), Tenneco Inc (NYSE:TEN), Westport Innovations Inc. (USA) (NASDAQ:WPRT), American Axle & Manufact. Holdings, Inc. (NYSE:AXL), and Dorman Products Inc. (NASDAQ:DORM). All of these stocks are in the auto parts industry and their market caps resemble MNRO’s market cap.

With the returns shown by our strategies, everyday investors should always monitor hedge fund and insider trading activity, and Monro Muffler Brake Inc (NASDAQ:MNRO) shareholders fit into this picture quite nicely.

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