In the financial world, there are tons of methods investors can use to analyze their holdings. Some of the most under-the-radar 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 elite fund managers can outperform the broader indices by a very impressive margin (see just how much).
Just as important, optimistic insider trading sentiment is another way to break down the stock market universe. Obviously, there are plenty of reasons for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the impressive potential of this tactic if investors know where to look (learn more here).
Now, it’s important to take a look at the recent action surrounding Gevo, Inc. (NASDAQ:GEVO).
How have hedgies been trading Gevo, Inc. (NASDAQ:GEVO)?
Heading into 2013, 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 hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially.
When looking at the hedgies we track, Israel Englander’s Millennium Management had the biggest position in Gevo, Inc. (NASDAQ:GEVO), worth close to $2.8 million, comprising less than 0.1%% of its total 13F portfolio. On Millennium Management’s heels is Savitr Capital, managed by Andrew R. Midler, which held a $1.5 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Anand Parekh’s Alyeska Investment Group, Philip Hempleman’s Ardsley Partners and Mark Kingdon’s Kingdon Capital.
Now, specific money managers were breaking ground themselves. Millennium Management, managed by Israel Englander, initiated the most valuable position in Gevo, Inc. (NASDAQ:GEVO). Millennium Management had 2.8 million invested in the company at the end of the quarter. Andrew R. Midler’s Savitr Capital also made a $1.5 million investment in the stock during the quarter. The following funds were also among the new GEVO investors: Mark Kingdon’s Kingdon Capital and Jim Simons’s Renaissance Technologies.
Insider trading activity in Gevo, Inc. (NASDAQ:GEVO)
Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past half-year. Over the latest 180-day time frame, Gevo, Inc. (NASDAQ:GEVO) has seen 3 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Gevo, Inc. (NASDAQ:GEVO). These stocks are Solazyme Inc (NASDAQ:SZYM), Landec Corporation (NASDAQ:LNDC), Aceto Corporation (NASDAQ:ACET) and Arabian American Development Co (NYSE:ARSD). This group of stocks belong to the chemicals – major diversified industry and their market caps match GEVO’s market cap.
