Who’s betting on Hillshire Brands Co (NYSE:HSH)?
In today’s marketplace, there are plenty of methods investors can use to monitor the equity markets. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outpace the broader indices by a superb amount (see just how much).
Just as useful, bullish insider trading activity is another way to analyze the world of equities. There are a variety of motivations for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this strategy if shareholders know where to look (learn more here).
What’s more, it’s important to discuss the latest info about Hillshire Brands Co (NYSE:HSH).
How have hedgies been trading Hillshire Brands Co (NYSE:HSH)?
At the end of the second quarter, a total of 33 of the hedge funds we track were long in this stock, a change of 3% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly.
When using filings from the hedgies we track, John Paulson’s Paulson & Co had the largest position in Hillshire Brands Co (NYSE:HSH), worth close to $99.6 million, comprising 0.7% of its total 13F portfolio. On Paulson & Co’s heels is D E Shaw, managed by D. E. Shaw, which held a $86.5 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Mario Gabelli’s GAMCO Investors, Phill Gross and Robert Atchinson’s Adage Capital Management and Clint Carlson’s Carlson Capital.
Now, particular hedge funds have been driving this bullishness. Paulson & Co, managed by John Paulson, established the most valuable position in Hillshire Brands Co (NYSE:HSH). Paulson & Co had 99.6 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $86.5 million position during the quarter. The following funds were also among the new HSH investors: Mario Gabelli’s GAMCO Investors, Phill Gross and Robert Atchinson’s Adage Capital Management, and Clint Carlson’s Carlson Capital.
What have insiders been doing with Hillshire Brands Co (NYSE:HSH)?
Insider buying is best served when the company we’re looking at has seen transactions within the past 180 days. Over the latest 180-day time frame, Hillshire Brands Co (NYSE:HSH) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Hillshire Brands Co (NYSE:HSH). These stocks are Gruma S.A.B. de C.V. (ADR) (NYSE:GMK), The Hain Celestial Group, Inc. (NASDAQ:HAIN), Ingredion Inc (NYSE:INGR), Ralcorp Holdings, Inc. (NYSE:RAH), and Flowers Foods, Inc. (NYSE:FLO). This group of stocks belong to the processed & packaged goods industry and their market caps are similar to HSH’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Gruma S.A.B. de C.V. (ADR) (NYSE:GMK) | 0 | 0 | |
| The Hain Celestial Group, Inc. (NASDAQ:HAIN) | 18 | 0 | 3 |
| Ingredion Inc (NYSE:INGR) | 23 | 0 | 6 |
| Ralcorp Holdings, Inc. (NYSE:RAH) | 0 | 0 | |
| Flowers Foods, Inc. (NYSE:FLO) | 25 | 1 | 4 |
Using the returns explained by our tactics, average investors must always keep one eye on hedge fund and insider trading sentiment, and Hillshire Brands Co (NYSE:HSH) applies perfectly to this mantra.
