Hedge Funds Are Selling HB Fuller Co (FUL)

What’s a smart HB Fuller Co (NYSE:FUL) investor to do?

In the 21st century investor’s toolkit, there are a multitude of metrics shareholders can use to analyze stocks. A duo of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can outclass the S&P 500 by a solid amount (see just how much).

Just as crucial, bullish insider trading activity is another way to look at the stock market universe. Just as you’d expect, there are lots of stimuli for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this tactic if investors know where to look (learn more here).

Keeping this in mind, we’re going to examine the latest info about HB Fuller Co (NYSE:FUL).

How are hedge funds trading HB Fuller Co (NYSE:FUL)?

In preparation for the third quarter, a total of 15 of the hedge funds we track held long positions in this stock, a change of -6% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes substantially.

When using filings from the hedgies we track, Phill Gross and Robert Atchinson’s Adage Capital Management had the largest position in HB Fuller Co (NYSE:FUL), worth close to $33.2 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Mario Gabelli of GAMCO Investors, with a $12.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Jim Simons’s Renaissance Technologies, and Ken Griffin’s Citadel Investment Group.

Due to the fact HB Fuller Co (NYSE:FUL) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of money managers who sold off their full holdings last quarter. Interestingly, Donald Chiboucis’s Columbus Circle Investors dropped the largest stake of all the hedgies we track, worth an estimated $20.2 million in stock. Jeffrey Vinik’s fund, Vinik Asset Management, also sold off its stock, about $16 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 1 funds last quarter.

What do corporate executives and insiders think about HB Fuller Co (NYSE:FUL)?

Insider buying is particularly usable when the company in focus has seen transactions within the past 180 days. Over the last six-month time period, HB Fuller Co (NYSE:FUL) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to HB Fuller Co (NYSE:FUL). These stocks are Cabot Corp (NYSE:CBT), Kronos Worldwide, Inc. (NYSE:KRO), Chemtura Corp (NYSE:CHMT), Olin Corporation (NYSE:OLN), and Sensient Technologies Corporation (NYSE:SXT). This group of stocks are in the specialty chemicals industry and their market caps match FUL’s market cap.

Using the returns shown by Insider Monkey’s tactics, regular investors should always keep one eye on hedge fund and insider trading sentiment, and HB Fuller Co (NYSE:FUL) shareholders fit into this picture quite nicely.

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