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Hedge Funds Are Buying Emcor Group Inc (NYSE:EME)

Emcor Group Inc (NYSE:EME) was in 20 hedge funds’ portfolio at the end of December. eme has seen an increase in enthusiasm from smart money lately. There were 18 hedge funds in our database with eme positions at the end of the previous quarter.

Richard Meisenberg ACK Asset ManagementAt the moment, there are a multitude of gauges market participants can use to analyze their holdings. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outperform the broader indices by a healthy margin (see just how much).

Equally as important, bullish insider trading activity is a second way to break down the stock market universe. There are lots of motivations for an upper level exec to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this method if you understand what to do (learn more here).

Now, it’s important to take a glance at the key action surrounding Emcor Group Inc (NYSE:EME).

How have hedgies been trading Emcor Group Inc (NYSE:EME)?

At the end of the fourth quarter, a total of 20 of the hedge funds we track held long positions in this stock, a change of 11% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly.

According to our comprehensive database, Chuck Royce’s Royce & Associates had the biggest position in Emcor Group Inc (NYSE:EME), worth close to $139 million, comprising 0.5% of its total 13F portfolio. Coming in second is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $69 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Martin Whitman’s Third Avenue Management, Cliff Asness’s AQR Capital Management and David Dreman’s Dreman Value Management.

With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Sandler Capital Management, managed by Andrew Sandler, created the largest position in Emcor Group Inc (NYSE:EME). Sandler Capital Management had 17 million invested in the company at the end of the quarter. Jeffrey Vinik’s Vinik Asset Management also made a $1 million investment in the stock during the quarter. The only other fund with a brand new eme position is Paul Tudor Jones’s Tudor Investment Corp.

How are insiders trading Emcor Group Inc (NYSE:EME)?

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the last half-year time frame, Emcor Group Inc (NYSE:EME) has seen zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Emcor Group Inc (NYSE:EME) 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.

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