In the financial world, there are many metrics investors can use to analyze publicly traded companies. Two of the most useful are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can outperform their index-focused peers by a very impressive amount (see just how much).
Equally as integral, positive insider trading activity is a second way to break down the stock market universe. As the old adage goes: there are many incentives for a corporate insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this strategy if investors understand what to do (learn more here).
Keeping this in mind, we’re going to take a gander at the recent action encompassing MeadWestvaco Corp. (NYSE:MWV).
What does the smart money think about MeadWestvaco Corp. (NYSE:MWV)?
In preparation for this year, a total of 18 of the hedge funds we track held long positions in this stock, a change of 13% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.
According to our comprehensive database, Nelson Peltz’s Trian Partners had the largest position in MeadWestvaco Corp. (NYSE:MWV), worth close to $51 million, accounting for 2.1% of its total 13F portfolio. On Trian Partners’s heels is Tudor Investment Corp, managed by Paul Tudor Jones, which held a $17 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and Phill Gross and Robert Atchinson’s Adage Capital Management.
As aggregate interest increased, key money managers were breaking ground themselves. Trian Partners, managed by Nelson Peltz, created the largest position in MeadWestvaco Corp. (NYSE:MWV). Trian Partners had 51 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also made a $5 million investment in the stock during the quarter. The other funds with brand new MWV positions are Stephen J. Errico’s Locust Wood Capital Advisers, Geoffrey Raynor’s Q Investments (Specter Holdings), and David Costen Haley’s HBK Investments.
What do corporate executives and insiders think about MeadWestvaco Corp. (NYSE:MWV)?
Insider purchases made by high-level executives is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time period, MeadWestvaco Corp. (NYSE:MWV) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the returns shown by our time-tested strategies, retail investors must always pay attention to hedge fund and insider trading activity, and MeadWestvaco Corp. (NYSE:MWV) applies perfectly to this mantra.
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