While the market is being driven by short-term sentiment influenced by uncertainty regarding the future of the interest rate environment in the U.S, the low commodity prices, and the economic dip in China, many smart money investors are keeping their optimism regarding the current bull run, while nonetheless hedging many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding NVR, Inc. (NYSE:NVR).
NVR, Inc. investors should pay attention to a decrease in enthusiasm from smart money recently. NVR was in 21 hedge funds’ portfolios at the end of September. There were 23 hedge funds in our database with NVR holdings at the end of the previous quarter. At the end of this article we will also compare NVR to other stocks including TECO Energy, Inc. (NYSE:TE), Qihoo 360 Technology Co Ltd (NYSE:QIHU), and Mid America Apartment Communities Inc (NYSE:MAA) to get a better sense of its popularity.
In the financial world there are several methods investors employ to grade stocks. A duo of the most under-the-radar methods are hedge fund and insider trading moves. We have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass their index-focused peers by a very impressive margin (see the details here).
Keeping this in mind, we’re going to view the latest action surrounding NVR, Inc. (NYSE:NVR).
Hedge fund activity in NVR, Inc. (NYSE:NVR)
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a 9% decline from the previous quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or had already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Impala Asset Management, managed by Robert Bishop, holds the number one position in NVR, Inc. (NYSE:NVR). Impala Asset Management has a $319 million position in the stock, comprising 19.1% of its 13F portfolio. Coming in second is Pennant Capital Management, managed by Alan Fournier, which holds a $246.7 million position; 5.2% of its 13F portfolio is allocated to the stock. Other members of the smart money that hold long positions comprise Ken Heebner’s Capital Growth Management, Chuck Royce’s Royce & Associates, and David Harding’s Winton Capital Management.