Here is What Hedge Funds Think About GrafTech International Ltd (GTI)

GrafTech International Ltd (NYSE:GTI) was in 16 hedge funds’ portfolio at the end of the first quarter of 2013. GTI investors should be aware of a decrease in support from the world’s most elite money managers lately. There were 23 hedge funds in our database with GTI positions at the end of the previous quarter.

To the average investor, there are plenty of metrics shareholders can use to track their holdings. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can beat the S&P 500 by a very impressive margin (see just how much).

Equally as integral, bullish insider trading sentiment is another way to break down the marketplace. Just as you’d expect, there are a variety of reasons for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Several academic studies have demonstrated the valuable potential of this method if you know where to look (learn more here).

With all of this in mind, let’s take a peek at the latest action surrounding GrafTech International Ltd (NYSE:GTI).

How are hedge funds trading GrafTech International Ltd (NYSE:GTI)?

At the end of the first quarter, a total of 16 of the hedge funds we track were bullish in this stock, a change of -30% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings significantly.

According to our comprehensive database, Chuck Royce’s Royce & Associates had the most valuable position in GrafTech International Ltd (NYSE:GTI), worth close to $148.8 million, comprising 0.5% of its total 13F portfolio. The second largest stake is held by Robert Pohly of Samlyn Capital, with a $45.2 million position; 1.4% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Mario Gabelli’s GAMCO Investors, D. E. Shaw’s D E Shaw and Neil Chriss’s Hutchin Hill Capital.

Due to the fact that GrafTech International Ltd (NYSE:GTI) has faced declining sentiment from hedge fund managers, logic holds that there exists a select few money managers that decided to sell off their full holdings heading into Q2. Intriguingly, Robert Pitts’s Steadfast Capital Management dumped the largest stake of the 450+ funds we watch, totaling about $30.8 million in stock., and Sanford J. Colen of Apex Capital was right behind this move, as the fund sold off about $16.7 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 7 funds heading into Q2.

Insider trading activity in GrafTech International Ltd (NYSE:GTI)

Insider trading activity, especially when it’s bullish, is best served when the company in focus has experienced transactions within the past half-year. Over the last 180-day time frame, GrafTech International Ltd (NYSE:GTI) has experienced 2 unique insiders buying, and 2 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to GrafTech International Ltd (NYSE:GTI). These stocks are Franklin Electric Co. (NASDAQ:FELE), Hollysys Automation Technologies Ltd (NASDAQ:HOLI), Littelfuse, Inc. (NASDAQ:LFUS), Altra Holdings, Inc. (NASDAQ:AIMC), and OSI Systems, Inc. (NASDAQ:OSIS). All of these stocks are in the industrial electrical equipment industry and their market caps are closest to GTI’s market cap.