In the eyes of many of your fellow readers, hedge funds are seen as delayed, outdated financial tools of a period lost to current times. Although there are more than 8,000 hedge funds trading in present day, Insider Monkey aim at the aristocrats of this club, close to 525 funds. It is widely held that this group has its hands on most of all hedge funds’ total assets, and by paying attention to their highest quality investments, we’ve deciphered a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Just as key, positive insider trading sentiment is another way to look at the investments you’re interested in. As the old adage goes: there are many reasons for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this tactic if you know where to look (learn more here).
Now that that’s out of the way, it’s important to analyze the recent info about Global Power Equipment Group Inc (NASDAQ:GLPW).
How have hedgies been trading Global Power Equipment Group Inc (NASDAQ:GLPW)?
In preparation for the third quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -22% from one quarter earlier. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes substantially.
Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the largest position in Global Power Equipment Group Inc (NASDAQ:GLPW). Royce & Associates has a $32.1 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Richard S. Meisenberg of ACK Asset Management, with a $5.5 million position; 2.2% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Thomas Ellis and Todd Hammer’s North Run Capital, Phill Gross and Robert Atchinson’s Adage Capital Management and Brian Taylor’s Pine River Capital Management.
Judging by the fact that Global Power Equipment Group Inc (NASDAQ:GLPW) has witnessed dropping sentiment from the smart money’s best and brightest, it’s safe to say that there exists a select few funds who sold off their entire stakes at the end of the second quarter. At the top of the heap, Nelson Obus’s Wynnefield Capital said goodbye to the largest position of the “upper crust” of funds we key on, worth an estimated $7.3 million in stock. Israel Englander’s fund, Millennium Management, also dumped its stock, about $0.4 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 2 funds at the end of the second quarter.
What have insiders been doing with Global Power Equipment Group Inc (NASDAQ:GLPW)?
Insider buying made by high-level executives is particularly usable when the company in question has seen transactions within the past half-year. Over the latest 180-day time frame, Global Power Equipment Group Inc (NASDAQ:GLPW) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Global Power Equipment Group Inc (NASDAQ:GLPW). These stocks are Ampco-Pittsburgh Corp. (NYSE:AP), ExOne Co (NASDAQ:XONE), Kadant Inc. (NYSE:KAI), Marine Products Corp. (NYSE:MPX), and Twin Disc, Incorporated (NASDAQ:TWIN). This group of stocks are in the diversified machinery industry and their market caps match GLPW’s market cap.