In the eyes of many of your peers, hedge funds are assumed to be useless, old investment tools of a period lost to current times. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site aim at the upper echelon of this group, about 525 funds. It is widely held that this group has its hands on the lion’s share of the hedge fund industry’s total capital, and by monitoring their best investments, we’ve spotted a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outperformed 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 outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as necessary, positive insider trading activity is another way to analyze the marketplace. Obviously, there are a variety of stimuli for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this method if “monkeys” know where to look (learn more here).
What’s more, it’s important to analyze the newest info about Valmont Industries, Inc. (NYSE:VMI).
What does the smart money think about Valmont Industries, Inc. (NYSE:VMI)?
At the end of the second quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 5% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, Royce & Associates, managed by Chuck Royce, holds the largest position in Valmont Industries, Inc. (NYSE:VMI). Royce & Associates has a $197 million position in the stock, comprising 0.6% of its 13F portfolio. On Royce & Associates’s heels is Jim Simons of Renaissance Technologies, with a $26.4 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Glenn Russell Dubin’s Highbridge Capital Management, Ian Simm’s Impax Asset Management and Joel Greenblatt’s Gotham Asset Management.
As industrywide interest increased, specific money managers have been driving this bullishness. Royce & Associates, managed by Chuck Royce, assembled the most valuable position in Valmont Industries, Inc. (NYSE:VMI). Royce & Associates had 197 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $26.4 million position during the quarter. The following funds were also among the new VMI investors: Glenn Russell Dubin’s Highbridge Capital Management, Ian Simm’s Impax Asset Management, and Joel Greenblatt’s Gotham Asset Management.
What have insiders been doing with Valmont Industries, Inc. (NYSE:VMI)?
Bullish insider trading is most useful when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time period, Valmont Industries, Inc. (NYSE:VMI) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Valmont Industries, Inc. (NYSE:VMI). These stocks are Worthington Industries, Inc. (NYSE:WOR), Chart Industries, Inc. (NASDAQ:GTLS), Carpenter Technology Corporation (NYSE:CRS), Reliance Steel & Aluminum (NYSE:RS), and Allegheny Technologies Incorporated (NYSE:ATI). This group of stocks are in the metal fabrication industry and their market caps are closest to VMI’s market cap.
