Monro Muffler Brake Inc (NASDAQ:MNRO) was in 7 hedge funds’ portfolio at the end of the fourth quarter of 2012. MNRO has experienced an increase in support from the world’s most elite money managers of late. There were 4 hedge funds in our database with MNRO holdings at the end of the previous quarter.
In the financial world, there are tons of methods investors can use to monitor the equity markets. A couple of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outperform the market by a healthy amount (see just how much).
Equally as important, bullish insider trading sentiment is another way to break down the financial markets. There are plenty of stimuli for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this tactic if shareholders know where to look (learn more here).
Now, it’s important to take a peek at the recent action encompassing Monro Muffler Brake Inc (NASDAQ:MNRO).
How have hedgies been trading Monro Muffler Brake Inc (NASDAQ:MNRO)?
In preparation for this year, a total of 7 of the hedge funds we track held long positions in this stock, a change of 75% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings considerably.
Of the funds we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the biggest position in Monro Muffler Brake Inc (NASDAQ:MNRO). Adage Capital Management has a $22.7 million position in the stock, comprising 0.1% of its 13F portfolio. On Adage Capital Management’s heels is Akre Capital Management, managed by Charles Akre, which held a $17.5 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Chuck Royce’s Royce & Associates, Ken Griffin’s Citadel Investment Group and Mario Gabelli’s GAMCO Investors.
As aggregate interest increased, key money managers were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the most valuable position in Monro Muffler Brake Inc (NASDAQ:MNRO). Adage Capital Management had 22.7 million invested in the company at the end of the quarter. John Fichthorn’s Dialectic Capital Management also made a $1.7 million investment in the stock during the quarter. The only other fund with a new position in the stock is Mike Vranos’s Ellington.
How have insiders been trading Monro Muffler Brake Inc (NASDAQ:MNRO)?
Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, Monro Muffler Brake Inc (NASDAQ:MNRO) has experienced 1 unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s also review 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.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Standard Motor Products, Inc. (NYSE:SMP) | 14 | 0 | 8 |
| Tenneco Inc (NYSE:TEN) | 18 | 0 | 12 |
| Westport Innovations Inc. (USA) (NASDAQ:WPRT) | 15 | 0 | 0 |
| American Axle & Manufact. Holdings, Inc. (NYSE:AXL) | 13 | 0 | 1 |
| Dorman Products Inc. (NASDAQ:DORM) | 7 | 0 | 4 |
With the returns shown by our studies, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Monro Muffler Brake Inc (NASDAQ:MNRO) is an important part of this process.
