If you were to ask many of your fellow readers, hedge funds are assumed to be delayed, old financial vehicles of an era lost to time. Although there are more than 8,000 hedge funds trading today, this site looks at the bigwigs of this group, around 525 funds. It is widely held that this group has its hands on the lion’s share of the hedge fund industry’s total assets, and by monitoring their highest performing stock picks, we’ve determined a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped 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 33 percentage points in 11 months (explore the details and some picks here).
Just as necessary, bullish insider trading sentiment is a second way to analyze the financial markets. Just as you’d expect, there are a variety of reasons for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this strategy if shareholders understand where to look (learn more here).
Thus, it’s important to examine the recent info about Mohawk Industries, Inc. (NYSE:MHK).
How have hedgies been trading Mohawk Industries, Inc. (NYSE:MHK)?
At Q2’s end, a total of 47 of the hedge funds we track were bullish in this stock, a change of 4% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings significantly.
When using filings from the hedgies we track, Robert Joseph Caruso’s Select Equity Group had the largest position in Mohawk Industries, Inc. (NYSE:MHK), worth close to $208.6 million, comprising 2.9% of its total 13F portfolio. Sitting at the No. 2 spot is John Lykouretzos of Hoplite Capital Management, with a $104.3 million position; the fund has 3.6% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Patrick Degorce’s Theleme Partners, Ken Griffin’s Citadel Investment Group and Robert Boucai’s Newbrook Capital Advisors.
As aggregate interest spiked, certain bigger names have jumped into Mohawk Industries, Inc. (NYSE:MHK) headfirst. Select Equity Group, managed by Robert Joseph Caruso, created the largest position in Mohawk Industries, Inc. (NYSE:MHK). Select Equity Group had 208.6 million invested in the company at the end of the quarter. John Lykouretzos’s Hoplite Capital Management also made a $104.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Patrick Degorce’s Theleme Partners, Ken Griffin’s Citadel Investment Group, and Robert Boucai’s Newbrook Capital Advisors.
What have insiders been doing with Mohawk Industries, Inc. (NYSE:MHK)?
Insider buying made by high-level executives is best served when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time period, Mohawk Industries, Inc. (NYSE:MHK) has experienced zero unique insiders purchasing, and 10 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 Mohawk Industries, Inc. (NYSE:MHK). These stocks are Dixie Group Inc (NASDAQ:DXYN), Culp, Inc. (NYSE:CFI), Unifi, Inc. (NYSE:UFI), Albany International Corp. (NYSE:AIN), and Interface, Inc. (NASDAQ:TILE). This group of stocks are the members of the textile industrial industry and their market caps resemble MHK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Dixie Group Inc (NASDAQ:DXYN) | 0 | 4 | |
| Culp, Inc. (NYSE:CFI) | 5 | 0 | 1 |
| Unifi, Inc. (NYSE:UFI) | 10 | 2 | 1 |
| Albany International Corp. (NYSE:AIN) | 12 | 0 | 1 |
| Interface, Inc. (NASDAQ:TILE) | 10 | 0 | 4 |
Using the returns shown by our strategies, regular investors must always watch hedge fund and insider trading activity, and Mohawk Industries, Inc. (NYSE:MHK) is no exception.
