In the financial world, there are many gauges market participants can use to monitor their holdings. Some of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can beat the S&P 500 by a superb margin (see just how much).
Equally as necessary, positive insider trading activity is another way to look at the stock market universe. Just as you’d expect, there are plenty of reasons for an executive to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this strategy if investors know where to look (learn more here).
Keeping this in mind, we’re going to discuss the latest info surrounding Meritor Inc (NYSE:MTOR).
What have hedge funds been doing with Meritor Inc (NYSE:MTOR)?
At Q2’s end, a total of 20 of the hedge funds we track were bullish in this stock, a change of 5% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings meaningfully.
Out of the hedge funds we follow, Glenview Capital, managed by Larry Robbins, holds the biggest position in Meritor Inc (NYSE:MTOR). Glenview Capital has a $68.3 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Marc Lasry of Avenue Capital, with a $23.2 million position; the fund has 2.8% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Glenn J. Krevlin’s Glenhill Advisors, Chuck Royce’s Royce & Associates and Matthew Knauer and Mina Faltas’s Nokota Management.
As one would understandably expect, certain bigger names have jumped into Meritor Inc (NYSE:MTOR) headfirst. Glenview Capital, managed by Larry Robbins, established the most valuable position in Meritor Inc (NYSE:MTOR). Glenview Capital had 68.3 million invested in the company at the end of the quarter. Marc Lasry’s Avenue Capital also initiated a $23.2 million position during the quarter. The following funds were also among the new MTOR investors: Glenn J. Krevlin’s Glenhill Advisors, Howard Marks’s Oaktree Capital Management, and Chuck Royce’s Royce & Associates.
How are insiders trading Meritor Inc (NYSE:MTOR)?
Insider buying made by high-level executives is particularly usable when the company in question has seen transactions within the past six months. Over the last half-year time period, Meritor Inc (NYSE:MTOR) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Meritor Inc (NYSE:MTOR). These stocks are Federal-Mogul Corporation (NASDAQ:FDML), Remy International Inc (NASDAQ:REMY), Gentherm Inc (NASDAQ:THRM), Superior Industries International Inc. (NYSE:SUP), and Modine Manufacturing Co. (NYSE:MOD). This group of stocks belong to the auto parts industry and their market caps match MTOR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Federal-Mogul Corporation (NASDAQ:FDML) | 9 | 0 | 0 |
| Remy International Inc (NASDAQ:REMY) | 3 | 0 | 0 |
| Gentherm Inc (NASDAQ:THRM) | 12 | 0 | 0 |
| Superior Industries International Inc. (NYSE:SUP) | 8 | 0 | 0 |
| Modine Manufacturing Co. (NYSE:MOD) | 10 | 0 | 0 |
Using the returns shown by the previously mentioned tactics, average investors must always pay attention to hedge fund and insider trading activity, and Meritor Inc (NYSE:MTOR) applies perfectly to this mantra.
