Navios Maritime Holdings Inc. (NYSE:NM) has seen an increase in hedge fund interest lately.
In the eyes of most investors, hedge funds are perceived as slow, old investment tools of yesteryear. While there are over 8000 funds trading at the moment, we at Insider Monkey choose to focus on the upper echelon of this group, close to 450 funds. It is widely believed that this group oversees the majority of the hedge fund industry’s total asset base, and by paying attention to their best equity investments, we have spotted a number of investment strategies that have historically outstripped the broader indices. 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 topped the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).
Equally as integral, optimistic insider trading sentiment is another way to break down the world of equities. There are a variety of stimuli for an insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this tactic if shareholders understand where to look (learn more here).
Now, let’s take a glance at the latest action encompassing Navios Maritime Holdings Inc. (NYSE:NM).
What have hedge funds been doing with Navios Maritime Holdings Inc. (NYSE:NM)?
At the end of the first quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 50% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings meaningfully.
According to our comprehensive database, Timothy S. Peterson’s Regiment Capital had the largest position in Navios Maritime Holdings Inc. (NYSE:NM), worth close to $17.1 million, comprising 3.7% of its total 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $1.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Andy Redleaf’s Whitebox Advisors, John Overdeck and David Siegel’s Two Sigma Advisors and Matthew Hulsizer’s PEAK6 Capital Management.
As one would reasonably expect, specific money managers have been driving this bullishness. PEAK6 Capital Management, managed by Matthew Hulsizer, created the biggest position in Navios Maritime Holdings Inc. (NYSE:NM). PEAK6 Capital Management had 0.4 million invested in the company at the end of the quarter. John Fichthorn’s Dialectic Capital Management also made a $0.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Neil Chriss’s Hutchin Hill Capital, Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners, and Ken Griffin’s Citadel Investment Group.
How are insiders trading Navios Maritime Holdings Inc. (NYSE:NM)?
Insider buying is at its handiest when the company in question has experienced transactions within the past six months. Over the latest half-year time frame, Navios Maritime Holdings Inc. (NYSE:NM) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s time-tested strategies, retail investors should always pay attention to hedge fund and insider trading sentiment, and Navios Maritime Holdings Inc. (NYSE:NM) is no exception.