In today’s marketplace, there are tons of methods shareholders can use to monitor stocks. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outperform the broader indices by a very impressive margin (see just how much).
Equally as key, bullish insider trading activity is another way to parse down the marketplace. There are a number of incentives for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the useful potential of this method if shareholders know where to look (learn more here).
With all of this in mind, let’s take a glance at the key action regarding BorgWarner Inc. (NYSE:BWA).
What have hedge funds been doing with BorgWarner Inc. (NYSE:BWA)?
At Q1’s end, a total of 20 of the hedge funds we track held long positions in this stock, a change of 11% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Christopher Medlock James’s Partner Fund Management had the biggest position in BorgWarner Inc. (NYSE:BWA), worth close to $105.8 million, accounting for 3.5% of its total 13F portfolio. The second largest stake is held by Mario Gabelli of GAMCO Investors, with a $49.2 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Jim Simons’s Renaissance Technologies, Christopher Lord’s Criterion Capital and Charles Clough’s Clough Capital Partners.
Now, some big names were leading the bulls’ herd. Partner Fund Management, managed by Christopher Medlock James, assembled the biggest position in BorgWarner Inc. (NYSE:BWA). Partner Fund Management had 105.8 million invested in the company at the end of the quarter. Christopher Lord’s Criterion Capital also made a $23.3 million investment in the stock during the quarter. The other funds with brand new BWA positions are Israel Englander’s Catapult Capital Management, Robert Polak’s Anchor Bolt Capital, and Matthew Hulsizer’s PEAK6 Capital Management.
How have insiders been trading BorgWarner Inc. (NYSE:BWA)?
Insider buying is most useful when the company in focus has experienced transactions within the past half-year. Over the last half-year time frame, BorgWarner Inc. (NYSE:BWA) has seen zero unique insiders buying, and 7 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to BorgWarner Inc. (NYSE:BWA). These stocks are Lear Corporation (NYSE:LEA), Delphi Automotive PLC (NYSE:DLPH), LKQ Corporation (NASDAQ:LKQ), TRW Automotive Holdings Corp. (NYSE:TRW), and Autoliv Inc. (NYSE:ALV). This group of stocks belong to the auto parts industry and their market caps are similar to BWA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Lear Corporation (NYSE:LEA) | 39 | 0 | 4 |
| Delphi Automotive PLC (NYSE:DLPH) | 49 | 0 | 7 |
| LKQ Corporation (NASDAQ:LKQ) | 19 | 1 | 8 |
| TRW Automotive Holdings Corp. (NYSE:TRW) | 33 | 0 | 10 |
| Autoliv Inc. (NYSE:ALV) | 10 | 0 | 10 |
With the results exhibited by our studies, everyday investors should always pay attention to hedge fund and insider trading activity, and BorgWarner Inc. (NYSE:BWA) is no exception.
