Is Nucor Corporation (NYSE:NUE) a buy here? Investors who are in the know are getting more optimistic. The number of bullish hedge fund bets increased by 2 lately.
In the eyes of most stock holders, hedge funds are assumed to be underperforming, outdated financial tools of yesteryear. While there are greater than 8000 funds in operation at present, we choose to focus on the bigwigs of this group, about 450 funds. Most estimates calculate that this group has its hands on the majority of the smart money’s total capital, and by keeping an eye on their top investments, we have revealed a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Equally as beneficial, positive insider trading sentiment is another way to parse down the financial markets. Just as you’d expect, there are lots of reasons for an insider to get rid of shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this tactic if piggybackers know where to look (learn more here).
Now, let’s take a peek at the key action encompassing Nucor Corporation (NYSE:NUE).
What have hedge funds been doing with Nucor Corporation (NYSE:NUE)?
At the end of the fourth quarter, a total of 21 of the hedge funds we track were bullish in this stock, a change of 11% from the third quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their stakes substantially.
According to our comprehensive database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in Nucor Corporation (NYSE:NUE). Adage Capital Management has a $24 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Highbridge Capital Management, managed by Glenn Russell Dubin, which held a $22 million position; 0.3% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Mark Kingdon’s Kingdon Capital, and Steven Cohen’s SAC Capital Advisors.
Consequently, key hedge funds were leading the bulls’ herd. Highbridge Capital Management, managed by Glenn Russell Dubin, created the most outsized position in Nucor Corporation (NYSE:NUE). Highbridge Capital Management had 22 million invested in the company at the end of the quarter. Mark Kingdon’s Kingdon Capital also made a $22 million investment in the stock during the quarter. The other funds with new positions in the stock are Sean Cullinan’s Point State Capital, Ken Gray and Steve Walsh’s Bryn Mawr Capital, and Richard Driehaus’s Driehaus Capital.
How have insiders been trading Nucor Corporation (NYSE:NUE)?
Insider buying is particularly usable when the company in question has experienced transactions within the past six months. Over the last half-year time period, Nucor Corporation (NYSE:NUE) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
With the results shown by our time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Nucor Corporation (NYSE:NUE) applies perfectly to this mantra.
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