Hedge Funds Aren’t Crazy About Commercial Vehicle Group, Inc. (CVGI) Anymore

Is Commercial Vehicle Group, Inc. (NASDAQ:CVGI) a healthy stock for your portfolio? Investors who are in the know are selling. The number of long hedge fund positions retreated by 2 in recent months.

If you’d ask most stock holders, hedge funds are perceived as slow, outdated investment tools of the past. While there are more than 8000 funds with their doors open today, we at Insider Monkey hone in on the elite of this club, around 450 funds. It is widely believed that this group has its hands on the lion’s share of all hedge funds’ total asset base, and by monitoring their highest performing picks, we have come up with a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).

Equally as important, bullish insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are lots of stimuli for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if shareholders know what to do (learn more here).

With all of this in mind, we’re going to take a look at the key action encompassing Commercial Vehicle Group, Inc. (NASDAQ:CVGI).

How are hedge funds trading Commercial Vehicle Group, Inc. (NASDAQ:CVGI)?

At year’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of -20% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings substantially.

According to our comprehensive database, Alexander Medina Seaver’s Stadium Capital Management had the biggest position in Commercial Vehicle Group, Inc. (NASDAQ:CVGI), worth close to $23.8 million, accounting for 5.7% of its total 13F portfolio. Sitting at the No. 2 spot is York Capital Management, managed by James Dinan, which held a $14.3 million position; 0.4% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Chuck Royce’s Royce & Associates, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Joel Greenblatt’s Gotham Asset Management.

Since Commercial Vehicle Group, Inc. (NASDAQ:CVGI) has experienced a declination in interest from hedge fund managers, it’s safe to say that there is a sect of fund managers that decided to sell off their positions entirely in Q4. Interestingly, Douglas W. Case’s Advanced Investment Partners dumped the biggest investment of all the hedgies we track, worth about $0.2 million in stock., and Mike Vranos of Ellington was right behind this move, as the fund sold off about $0.1 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 2 funds in Q4.

What have insiders been doing with Commercial Vehicle Group, Inc. (NASDAQ:CVGI)?

Bullish insider trading is best served when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, Commercial Vehicle Group, Inc. (NASDAQ:CVGI) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Commercial Vehicle Group, Inc. (NASDAQ:CVGI). These stocks are Magna International Inc. (USA) (NYSE:MGA), Genuine Parts Company (NYSE:GPC), The Coast Distribution System, Inc. (NYSEAMEX:CRV), , and China Auto Logistics Inc (NASDAQ:CALI). All of these stocks are in the auto parts wholesale industry and their market caps are similar to CVGI’s market cap.