Gildan Activewear Inc (USA) (NYSE:GIL): Hedge Funds and Insiders Are Bearish, What Should You Do?

Is Gildan Activewear Inc (USA) (NYSE:GIL) the right pick for your portfolio? Hedge funds are in a pessimistic mood. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience

Gildan Activewear Inc (USA) (NYSE:GIL)

To the average investor, there are many metrics shareholders can use to track stocks. A duo of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can beat the S&P 500 by a superb margin (see just how much).

Equally as key, optimistic insider trading activity is a second way to parse down the world of equities. Just as you’d expect, there are lots of stimuli for an insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this method if piggybackers know where to look (learn more here).

Consequently, we’re going to take a peek at the recent action surrounding Gildan Activewear Inc (USA) (NYSE:GIL).

What have hedge funds been doing with Gildan Activewear Inc (USA) (NYSE:GIL)?

At the end of the fourth quarter, a total of 18 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes substantially.

Of the funds we track, Alexander Mitchell’s Scopus Asset Management had the biggest position in Gildan Activewear Inc (USA) (NYSE:GIL), worth close to $54 million, accounting for 1.8% of its total 13F portfolio. On Scopus Asset Management’s heels is Chuck Royce of Royce & Associates, with a $44 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include David Keidan’s Buckingham Capital Management, Jim Simons’s Renaissance Technologies and Gregg J. Powers’s Private Capital Management.

Judging by the fact that Gildan Activewear Inc (USA) (NYSE:GIL) has experienced declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of hedgies that decided to sell off their full holdings heading into 2013. At the top of the heap, Meryl Witmer’s Eagle Value Partners dropped the biggest investment of all the hedgies we monitor, comprising about $14 million in stock., and Andrew Feldstein and Stephen Siderow of Blue Mountain Capital was right behind this move, as the fund said goodbye to about $13 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Gildan Activewear Inc (USA) (NYSE:GIL)?

Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, Gildan Activewear Inc (USA) (NYSE:GIL) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns demonstrated by our studies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Gildan Activewear Inc (USA) (NYSE:GIL) is an important part of this process.

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