Innophos Holdings, Inc. (NASDAQ:IPHS) was in 12 hedge funds’ portfolio at the end of the fourth quarter of 2012. IPHS has experienced an increase in hedge fund interest recently. There were 11 hedge funds in our database with IPHS holdings at the end of the previous quarter.
In today’s marketplace, there are many gauges market participants can use to monitor Mr. Market. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outperform their index-focused peers by a healthy margin (see just how much).
Equally as integral, bullish insider trading sentiment is a second way to parse down the financial markets. As the old adage goes: there are lots of stimuli for an executive to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this strategy if piggybackers understand what to do (learn more here).
Consequently, it’s important to take a glance at the recent action regarding Innophos Holdings, Inc. (NASDAQ:IPHS).
What does the smart money think about Innophos Holdings, Inc. (NASDAQ:IPHS)?
Heading into 2013, a total of 12 of the hedge funds we track were long in this stock, a change of 9% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in Innophos Holdings, Inc. (NASDAQ:IPHS), worth close to $34.5 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Jay Petschek and Steven Major of Corsair Capital Management, with a $24.7 million position; 4.2% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Thomas A. Giovine’s Giovine Capital, Steven Cohen’s SAC Capital Advisors and Israel Englander’s Millennium Management.
As industrywide interest jumped, some big names have jumped into Innophos Holdings, Inc. (NASDAQ:IPHS) headfirst. HBK Investments, managed by David Costen Haley, initiated the biggest position in Innophos Holdings, Inc. (NASDAQ:IPHS). HBK Investments had 0.3 million invested in the company at the end of the quarter. Ken Gray and Steve Walsh’s Bryn Mawr Capital also initiated a $0.2 million position during the quarter.
What do corporate executives and insiders think about Innophos Holdings, Inc. (NASDAQ:IPHS)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past six months. Over the latest 180-day time frame, Innophos Holdings, Inc. (NASDAQ:IPHS) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Innophos Holdings, Inc. (NASDAQ:IPHS). These stocks are Flotek Industries Inc (NYSE:FTK), Kronos Worldwide, Inc. (NYSE:KRO), WD-40 Company (NASDAQ:WDFC), Koppers Holdings Inc. (NYSE:KOP), and Innospec Inc. (NASDAQ:IOSP). All of these stocks are in the specialty chemicals industry and their market caps are closest to IPHS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Flotek Industries Inc (NYSE:FTK) | 10 | 0 | 1 |
| Kronos Worldwide, Inc. (NYSE:KRO) | 4 | 2 | 1 |
| WD-40 Company (NASDAQ:WDFC) | 4 | 1 | 4 |
| Koppers Holdings Inc. (NYSE:KOP) | 10 | 0 | 7 |
| Innospec Inc. (NASDAQ:IOSP) | 14 | 0 | 6 |
With the results demonstrated by our studies, everyday investors should always pay attention to hedge fund and insider trading activity, and Innophos Holdings, Inc. (NASDAQ:IPHS) is no exception.
