HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) was in 10 hedge funds’ portfolio at the end of the fourth quarter of 2012. ZINC shareholders have witnessed an increase in enthusiasm from smart money recently. There were 9 hedge funds in our database with ZINC positions at the end of the previous quarter.
In the eyes of most market participants, hedge funds are viewed as worthless, old investment vehicles of the past. While there are more than 8000 funds with their doors open at present, we at Insider Monkey hone in on the leaders of this club, around 450 funds. It is widely believed that this group has its hands on the lion’s share of the smart money’s total asset base, and by watching their best investments, we have spotted a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).
Equally as important, positive insider trading activity is a second way to break down the marketplace. There are many reasons for an insider to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this method if “monkeys” understand where to look (learn more here).
Keeping this in mind, let’s take a glance at the recent action regarding HORSEHEAD HOLDING CORP. (NASDAQ:ZINC).
How are hedge funds trading HORSEHEAD HOLDING CORP. (NASDAQ:ZINC)?
In preparation for this year, a total of 10 of the hedge funds we track were bullish in this stock, a change of 11% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the most valuable position in HORSEHEAD HOLDING CORP. (NASDAQ:ZINC). Royce & Associates has a $54 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Mohnish Pabrai of Mohnish Pabrai, with a $21 million position; the fund has 6.7% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Abby Flamholz and Yehuda Blinder’s ADAR Investment Management, Cliff Asness’s AQR Capital Management and D. E. Shaw’s D E Shaw.
As aggregate interest increased, specific money managers have jumped into HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) headfirst. Newland Capital, managed by Ken Brodkowitz and Mike Vermut, assembled the most outsized position in HORSEHEAD HOLDING CORP. (NASDAQ:ZINC). Newland Capital had 0 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0 million investment in the stock during the quarter.
How have insiders been trading HORSEHEAD HOLDING CORP. (NASDAQ:ZINC)?
Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time period, HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) has experienced 1 unique insiders buying, and zero 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 HORSEHEAD HOLDING CORP. (NASDAQ:ZINC). These stocks are Denison Mines Corp (USA) (NYSEAMEX:DNN), Molycorp Inc (NYSE:MCP), Taseko Mines Limited (USA) (NYSEAMEX:TGB), Thompson Creek Metals Company Inc (USA) (NYSE:TC), and Hi-Crush Partners LP (NYSE:HCLP). This group of stocks are the members of the industrial metals & minerals industry and their market caps resemble ZINC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Denison Mines Corp (USA) (NYSEAMEX:DNN) | 7 | 0 | 0 |
| Molycorp Inc (NYSE:MCP) | 14 | 6 | 0 |
| Taseko Mines Limited (USA) (NYSEAMEX:TGB) | 2 | 0 | 0 |
| Thompson Creek Metals Company Inc (USA) (NYSE:TC) | 10 | 3 | 0 |
| Hi-Crush Partners LP (NYSE:HCLP) | 2 | 1 | 0 |
With the results demonstrated by our studies, everyday investors must always pay attention to hedge fund and insider trading activity, and HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) applies perfectly to this mantra.
