Tredegar Corporation (TG): Insiders Aren’t Crazy About It

Tredegar Corporation (NYSE:TG) has seen an increase in support from the world’s most elite money managers of late.

At the moment, there are tons of indicators investors can use to watch the equity markets. Some of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce their index-focused peers by a healthy margin (see just how much).

Just as beneficial, positive insider trading activity is a second way to parse down the world of equities. There are a variety of incentives for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this strategy if piggybackers understand where to look (learn more here).

Now, it’s important to take a peek at the recent action regarding Tredegar Corporation (NYSE:TG).

How have hedgies been trading Tredegar Corporation (NYSE:TG)?

In preparation for this year, a total of 6 of the hedge funds we track held long positions in this stock, a change of 50% from the third quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes meaningfully.

Of the funds we track, Mario Gabelli’s GAMCO Investors had the largest position in Tredegar Corporation (NYSE:TG), worth close to $69.6 million, accounting for 0.5% of its total 13F portfolio. The second largest stake is held by AQR Capital Management, managed by Cliff Asness, which held a $2.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Jim Simons’s Renaissance Technologies, D. E. Shaw’s D E Shaw and Chuck Royce’s Royce & Associates.

As industrywide interest jumped, key hedge funds were breaking ground themselves. Renaissance Technologies, managed by Jim Simons, created the largest position in Tredegar Corporation (NYSE:TG). Renaissance Technologies had 0.9 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0.2 million position during the quarter.

Insider trading activity in Tredegar Corporation (NYSE:TG)

Insider purchases made by high-level executives is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time period, Tredegar Corporation (NYSE:TG) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Tredegar Corporation (NYSE:TG). These stocks are Berry Plastics Group Inc (NYSE:BERY), Myers Industries, Inc. (NYSE:MYE), Cooper Tire & Rubber Company (NYSE:CTB), Titan International Inc (NYSE:TWI), and Rogers Corporation (NYSE:ROG). This group of stocks belong to the rubber & plastics industry and their market caps are closest to TG’s market cap.

With the returns demonstrated by the aforementioned strategies, everyday investors should always watch hedge fund and insider trading activity, and Tredegar Corporation (NYSE:TG) applies perfectly to this mantra.

Click here to learn why you should track hedge funds