Hedge Funds Are Buying Mueller Industries, Inc. (NYSE:MLI)

Is Mueller Industries, Inc. (NYSE:MLI) a first-rate investment today? Hedge funds are taking an optimistic view. The number of bullish hedge fund bets went up by 4 in recent months.

According to most shareholders, hedge funds are perceived as underperforming, outdated investment vehicles of yesteryear. While there are over 8000 funds in operation today, we at Insider Monkey look at the aristocrats of this group, about 450 funds. It is estimated that this group has its hands on the majority of the hedge fund industry’s total capital, and by monitoring their top picks, we have unsheathed a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Mueller Industries, Inc. (NYSE:MLI)

Equally as important, optimistic insider trading activity is another way to break down the world of equities. There are a variety of incentives for an upper level exec to downsize shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this method if investors know where to look (learn more here).

Now, we’re going to take a peek at the recent action regarding Mueller Industries, Inc. (NYSE:MLI).

What does the smart money think about Mueller Industries, Inc. (NYSE:MLI)?

At the end of the fourth quarter, a total of 21 of the hedge funds we track held long positions in this stock, a change of 24% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully.

When looking at the hedgies we track, Jeffrey Gates’s Gates Capital Management had the most valuable position in Mueller Industries, Inc. (NYSE:MLI), worth close to $52 million, comprising 3.2% of its total 13F portfolio. Sitting at the No. 2 spot is Ken Fisher of Fisher Asset Management, with a $37 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Chuck Royce’s Royce & Associates, David Cohen and Harold Levy’s Iridian Asset Management and Mario Gabelli’s GAMCO Investors.

Now, key money managers were breaking ground themselves. Kingdon Capital, managed by Mark Kingdon, created the biggest position in Mueller Industries, Inc. (NYSE:MLI). Kingdon Capital had 10 million invested in the company at the end of the quarter. Michael Lowenstein’s Kensico Capital also made a $4 million investment in the stock during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Robert Bishop’s Impala Asset Management, and David Costen Haley’s HBK Investments.

Insider trading activity in Mueller Industries, Inc. (NYSE:MLI)

Insider buying is most useful when the company in focus has seen transactions within the past 180 days. Over the last 180-day time frame, Mueller Industries, Inc. (NYSE:MLI) has seen 1 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned studies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Mueller Industries, Inc. (NYSE:MLI) applies perfectly to this mantra.

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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines 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!