Harry Winston Diamond Corporation (USA) (NYSE:HWD): Are Hedge Funds Right About This Stock?

Harry Winston Diamond Corporation (USA) (NYSE:HWD) was in 19 hedge funds’ portfolio at the end of the fourth quarter of 2012. HWD has seen an increase in activity from the world’s largest hedge funds in recent months. There were 17 hedge funds in our database with HWD positions at the end of the previous quarter.

In the eyes of most traders, hedge funds are viewed as worthless, old financial tools of yesteryear. While there are greater than 8000 funds trading today, we choose to focus on the aristocrats of this group, around 450 funds. Most estimates calculate that this group controls the lion’s share of the smart money’s total asset base, and by tracking their best equity investments, we have come up with a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 outperformed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Harry Winston Diamond CorporationJust as important, optimistic insider trading activity is another way to break down the world of equities. There are many motivations for an insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if “monkeys” understand where to look (learn more here).

With these “truths” under our belt, let’s take a peek at the recent action encompassing Harry Winston Diamond Corporation (USA) (NYSE:HWD).

How have hedgies been trading Harry Winston Diamond Corporation (USA) (NYSE:HWD)?

Heading into 2013, a total of 19 of the hedge funds we track held long positions in this stock, a change of 12% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes significantly.

Of the funds we track, Select Equity Group, managed by Robert Joseph Caruso, holds the largest position in Harry Winston Diamond Corporation (USA) (NYSE:HWD). Select Equity Group has a $27 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is Karsch Capital Management, managed by Michael Karsch, which held a $19 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Keith Meister’s Corvex Capital, Paul Tudor Jones’s Tudor Investment Corp and Jeffrey Smith’s Starboard Value LP.

Consequently, key money managers were breaking ground themselves. Tudor Investment Corp, managed by Paul Tudor Jones, assembled the most valuable position in Harry Winston Diamond Corporation (USA) (NYSE:HWD). Tudor Investment Corp had 9 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also initiated a $5 million position during the quarter. The other funds with new positions in the stock are Mark Kingdon’s Kingdon Capital, Jim Simons’s Renaissance Technologies, and Dmitry Balyasny’s Balyasny Asset Management.

What have insiders been doing with Harry Winston Diamond Corporation (USA) (NYSE:HWD)?

Bullish insider trading is best served when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time frame, Harry Winston Diamond Corporation (USA) (NYSE:HWD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned strategies, retail investors should always keep an eye on hedge fund and insider trading activity, and Harry Winston Diamond Corporation (USA) (NYSE:HWD) is no exception.

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

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% 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

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

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

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!