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Hedge Funds Are Buying Belden Inc. (BDC)

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Is Belden Inc. (NYSE:BDC) a good investment?

If you were to ask many traders, hedge funds are viewed as overrated, outdated financial vehicles of an era lost to time. Although there are In excess of 8,000 hedge funds with their doors open currently, this site aim at the leaders of this group, close to 525 funds. It is widely held that this group controls the majority of all hedge funds’ total capital, and by keeping an eye on their highest quality investments, we’ve uncovered a few investment strategies that have historically outperformed the S&P 500. 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).

Equally as key, optimistic insider trading activity is a second way to analyze the world of equities. Just as you’d expect, there are lots of reasons for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this strategy if shareholders understand where to look (learn more here).

Belden Inc. (NYSE:BDC)

Keeping this in mind, let’s discuss the latest info surrounding Belden Inc. (NYSE:BDC).

What does the smart money think about Belden Inc. (NYSE:BDC)?

At Q2’s end, a total of 15 of the hedge funds we track were long in this stock, a change of 7% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.

According to our 13F database, Matthew Lindenbaum’s Basswood Capital had the most valuable position in Belden Inc. (NYSE:BDC), worth close to $32 million, comprising 2.1% of its total 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $22.5 million position; 0.2% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Amy Minella’s Cardinal Capital, Chuck Royce’s Royce & Associates and Mario Gabelli’s GAMCO Investors.

Consequently, certain bigger names have jumped into Belden Inc. (NYSE:BDC) headfirst. Basswood Capital, managed by Matthew Lindenbaum, created the most outsized position in Belden Inc. (NYSE:BDC). Basswood Capital had 32 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also initiated a $22.5 million position during the quarter. The other funds with brand new BDC positions are Amy Minella’s Cardinal Capital, Chuck Royce’s Royce & Associates, and Mario Gabelli’s GAMCO Investors.

What do corporate executives and insiders think about Belden Inc. (NYSE:BDC)?

Insider buying made by high-level executives is best served when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time frame, Belden Inc. (NYSE:BDC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Belden Inc. (NYSE:BDC). These stocks are A. O. Smith Corporation (NYSE:AOS), Franklin Electric Co. (NASDAQ:FELE), General Cable Corporation (NYSE:BGC), Woodward Inc (NASDAQ:WWD), and EnerSys (NYSE:ENS). This group of stocks are the members of the industrial electrical equipment industry and their market caps are closest to BDC’s market cap.

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