Arctic Cat Inc (NASDAQ:ACAT) was in 13 hedge funds’ portfolio at the end of December. ACAT investors should pay attention to an increase in support from the world’s most elite money managers lately. There were 12 hedge funds in our database with ACAT holdings at the end of the previous quarter.
According to most traders, hedge funds are perceived as slow, outdated investment vehicles of years past. While there are over 8000 funds with their doors open at the moment, we at Insider Monkey look at the top tier of this group, around 450 funds. It is widely believed that this group controls most of all hedge funds’ total asset base, and by monitoring their highest performing stock picks, we have revealed a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per 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 beaten the S&P 500 index by 24 percentage points in 7 months (see the details here).
Just as integral, positive insider trading sentiment is another way to break down the stock market universe. As the old adage goes: there are many stimuli for an executive to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this tactic if piggybackers know where to look (learn more here).
Consequently, it’s important to take a glance at the key action encompassing Arctic Cat Inc (NASDAQ:ACAT).
How are hedge funds trading Arctic Cat Inc (NASDAQ:ACAT)?
At year’s end, a total of 13 of the hedge funds we track held long positions in this stock, a change of 8% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes significantly.
According to our comprehensive database, Select Equity Group, managed by Robert Joseph Caruso, holds the largest position in Arctic Cat Inc (NASDAQ:ACAT). Select Equity Group has a $25.3 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is AQR Capital Management, managed by Cliff Asness, which held a $7.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Boaz Weinstein’s Saba Capital, Chuck Royce’s Royce & Associates and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
As industrywide interest jumped, specific money managers were breaking ground themselves. Saba Capital, managed by Boaz Weinstein, assembled the biggest position in Arctic Cat Inc (NASDAQ:ACAT). Saba Capital had 6.3 million invested in the company at the end of the quarter. John Fichthorn’s Dialectic Capital Management also made a $2.3 million investment in the stock during the quarter. The other funds with brand new ACAT positions are John Fichthorn’s Dialectic Capital Management and Neil Chriss’s Hutchin Hill Capital.
What have insiders been doing with Arctic Cat Inc (NASDAQ:ACAT)?
Bullish insider trading is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the latest six-month time frame, Arctic Cat Inc (NASDAQ:ACAT) has experienced 2 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Arctic Cat Inc (NASDAQ:ACAT). These stocks are Polaris Industries Inc. (NYSE:PII), Thor Industries, Inc. (NYSE:THO), Drew Industries, Inc. (NYSE:DW), Federal Signal Corporation (NYSE:FSS), and Winnebago Industries, Inc. (NYSE:WGO). This group of stocks are in the recreational vehicles industry and their market caps are similar to ACAT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Polaris Industries Inc. (NYSE:PII) | 26 | 0 | 11 |
| Thor Industries, Inc. (NYSE:THO) | 15 | 1 | 1 |
| Drew Industries, Inc. (NYSE:DW) | 10 | 0 | 9 |
| Federal Signal Corporation (NYSE:FSS) | 9 | 1 | 0 |
| Winnebago Industries, Inc. (NYSE:WGO) | 12 | 2 | 0 |
With the returns shown by Insider Monkey’s research, everyday investors should always pay attention to hedge fund and insider trading activity, and Arctic Cat Inc (NASDAQ:ACAT) is no exception.
