Do Hedge Funds and Insiders Love Griffon Corporation (GFF)?

Page 1 of 2

Is Griffon Corporation (NYSE:GFF) a marvelous investment right now? Hedge funds are taking an optimistic view. The number of long hedge fund bets rose by 4 in recent months.

Griffon Corporation (NYSE:GFF)

To most market participants, hedge funds are seen as worthless, outdated financial vehicles of years past. While there are greater than 8000 funds in operation at present, we choose to focus on the masters of this club, about 450 funds. It is estimated that this group oversees the majority of the hedge fund industry’s total asset base, and by tracking their best stock picks, we have found a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).

Equally as integral, bullish insider trading sentiment is another way to parse down the marketplace. Obviously, there are many stimuli for an upper level exec to sell shares of his or her company, but only one, very obvious reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).

With all of this in mind, we’re going to take a gander at the latest action regarding Griffon Corporation (NYSE:GFF).

What does the smart money think about Griffon Corporation (NYSE:GFF)?

In preparation for this quarter, a total of 13 of the hedge funds we track were long in this stock, a change of 44% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully.

When looking at the hedgies we track, GAMCO Investors, managed by Mario Gabelli, holds the biggest position in Griffon Corporation (NYSE:GFF). GAMCO Investors has a $76.3 million position in the stock, comprising 0.5% of its 13F portfolio. On GAMCO Investors’s heels is Pzena Investment Management, managed by Richard S. Pzena, which held a $30.1 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other peers with similar optimism include Richard S. Meisenberg’s ACK Asset Management, D. E. Shaw’s D E Shaw and Doug Silverman and Alexander Klabin’s Senator Investment Group.

Now, specific money managers were breaking ground themselves. ACK Asset Management, managed by Richard S. Meisenberg, assembled the most valuable position in Griffon Corporation (NYSE:GFF). ACK Asset Management had 4.8 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $0.3 million position during the quarter. The following funds were also among the new GFF investors: Israel Englander’s Millennium Management, Ken Gray and Steve Walsh’s Bryn Mawr Capital, and Paul Tudor Jones’s Tudor Investment Corp.

What have insiders been doing with Griffon Corporation (NYSE:GFF)?

Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past half-year. Over the last half-year time period, Griffon Corporation (NYSE:GFF) has experienced 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Griffon Corporation (NYSE:GFF). These stocks are Trex Company, Inc. (NYSE:TREX), Apogee Enterprises, Inc. (NASDAQ:APOG), Headwaters Inc (NYSE:HW), Universal Forest Products, Inc. (NASDAQ:UFPI), and AAON, Inc. (NASDAQ:AAON). This group of stocks belong to the general building materials industry and their market caps are closest to GFF’s market cap.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!