Delphi Automotive PLC (NYSE:DLPH), Autoliv Inc. (NYSE:ALV): BorgWarner Inc. (NYSE:BWA): Insiders Are Dumping, Should You?

BorgWarner Inc. (NYSE:BWA) investors should be aware of a decrease in hedge fund interest lately.

BorgWarner Inc. (NYSE:BWA)In the financial world, there are plenty of indicators shareholders can use to monitor publicly traded companies. Two 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 best money managers can beat the market by a very impressive amount (see just how much).

Equally as key, optimistic insider trading activity is another way to parse down the investments you’re interested in. As the old adage goes: there are many incentives for an insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if you know where to look (learn more here).

With these “truths” under our belt, it’s important to take a glance at the key action regarding BorgWarner Inc. (NYSE:BWA).

How have hedgies been trading BorgWarner Inc. (NYSE:BWA)?

In preparation for this year, a total of 16 of the hedge funds we track were long in this stock, a change of -16% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes meaningfully.

Of the funds we track, Mario Gabelli’s GAMCO Investors had the most valuable position in BorgWarner Inc. (NYSE:BWA), worth close to $49 million, accounting for 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $27 million position; 0.3% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Charles Clough’s Clough Capital Partners, D. E. Shaw’s D E Shaw and David Tepper’s Appaloosa Management LP.

Due to the fact that BorgWarner Inc. (NYSE:BWA) has faced declining sentiment from hedge fund managers, logic holds that there was a specific group of hedge funds who sold off their entire stakes heading into 2013. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest position of all the hedgies we track, worth close to $17 million in stock., and Alexander Mitchell of Scopus Asset Management was right behind this move, as the fund said goodbye to about $14 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds heading into 2013.

Insider trading activity in BorgWarner Inc. (NYSE:BWA)

Insider buying is most useful when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time frame, BorgWarner Inc. (NYSE:BWA) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to BorgWarner Inc. (NYSE:BWA). These stocks are Lear Corporation (NYSE:LEA), Delphi Automotive PLC (NYSE:DLPH), LKQ Corporation (NASDAQ:LKQ), TRW Automotive Holdings Corp. (NYSE:TRW), and Autoliv Inc. (NYSE:ALV). This group of stocks are the members of the auto parts industry and their market caps resemble BWA’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Lear Corporation (NYSE:LEA) 37 0 6
Delphi Automotive PLC (NYSE:DLPH) 38 0 7
LKQ Corporation (NASDAQ:LKQ) 14 1 7
TRW Automotive Holdings Corp. (NYSE:TRW) 23 0 8
Autoliv Inc. (NYSE:ALV) 10 0 10

With the returns demonstrated by Insider Monkey’s strategies, retail investors should always pay attention to hedge fund and insider trading sentiment, and BorgWarner Inc. (NYSE:BWA) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!