The McGraw-Hill Companies, Inc. (NYSE:MHP) investors should pay attention to an increase in hedge fund sentiment recently.
At the moment, there are tons of methods shareholders can use to watch stocks. A couple of the most useful 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 investment managers can outpace their index-focused peers by a very impressive margin (see just how much).
Equally as key, positive insider trading activity is another way to parse down the stock market universe. Just as you’d expect, there are plenty of stimuli for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).
With these “truths” under our belt, we’re going to take a peek at the key action encompassing The McGraw-Hill Companies, Inc. (NYSE:MHP).
Hedge fund activity in The McGraw-Hill Companies, Inc. (NYSE:MHP)
In preparation for this year, a total of 31 of the hedge funds we track held long positions in this stock, a change of 11% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, JANA Partners, managed by Barry Rosenstein, holds the most valuable position in The McGraw-Hill Companies, Inc. (NYSE:MHP). JANA Partners has a $118 million position in the stock, comprising 3.3% of its 13F portfolio. The second largest stake is held by Tiger Global Management LLC, with a $113 million position; 2.1% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include Jeffrey Gates’s Gates Capital Management, Christian Leone’s Luxor Capital Group and Eric Mindich’s Eton Park Capital.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Tiger Global Management LLC initiated the most valuable position in The McGraw-Hill Companies, Inc. (NYSE:MHP). Tiger Global Management LLC had 113 million invested in the company at the end of the quarter. Christian Leone’s Luxor Capital Group also initiated a $62 million position during the quarter. The following funds were also among the new MHP investors: Eric Mindich’s Eton Park Capital, Jeffrey Altman’s Owl Creek Asset Management, and Chris Hohn’s Childrens Investment Fund.
How are insiders trading The McGraw-Hill Companies, Inc. (NYSE:MHP)?
Bullish insider trading is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the latest six-month time frame, The McGraw-Hill Companies, Inc. (NYSE:MHP) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the results shown by our time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and The McGraw-Hill Companies, Inc. (NYSE:MHP) is no exception.
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