To many market players, hedge funds are viewed as overrated, old investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site looks at the elite of this group, close to 525 funds. It is widely held that this group controls most of the hedge fund industry's total capital, and by keeping an eye on their best picks, we've brought to light a few 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 a 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 33 percentage points in 11 months (find the details here).
Equally as useful, bullish insider trading sentiment is a second way to look at the stock market universe. Obviously, there are plenty of reasons for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this strategy if you understand where to look (learn more here).
Now that that's out of the way, we're going to study the latest info for Pike Electric Corporation (NYSE:PIKE).
At the end of the second quarter, a total of 23 of the hedge funds we track were bullish in this stock, a change of 77% from the first quarter. With the smart money's sentiment swirling, there exists an "upper tier" of key hedge fund managers who were boosting their stakes meaningfully.
When using filings from the hedgies we track, ACK Asset Management, managed by Richard S. Meisenberg, holds the largest position in Pike Electric Corporation (NYSE:PIKE). ACK Asset Management has a $9.5 million position in the stock, comprising 3.9% of its 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $9.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Dmitry Balyasny's Balyasny Asset Management, Anand Parekh's Alyeska Investment Group and Robert B. Gillam's McKinley Capital Management.
As industrywide interest increased, certain bigger names have jumped into Pike Electric Corporation (NYSE:PIKE) headfirst. ACK Asset Management, managed by Richard S. Meisenberg, initiated the biggest position in Pike Electric Corporation (NYSE:PIKE). ACK Asset Management had 9.5 million invested in the company at the end of the quarter. Chuck Royce's Royce & Associates also initiated a $9.4 million position during the quarter. The following funds were also among the new PIKE investors: Dmitry Balyasny's Balyasny Asset Management, Anand Parekh's Alyeska Investment Group, and Robert B. Gillam's McKinley Capital Management.
Legal insider trading, particularly when it's bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last half-year time period, Pike Electric Corporation (NYSE:PIKE) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll check out the relationship between both of these indicators in other stocks similar to Pike Electric Corporation (NYSE:PIKE). These stocks are Quanta Services Inc (NYSE:PWR), Emcor Group Inc (NYSE:EME), Integrated Electrical Services, Inc. (NASDAQ:IESC), Comfort Systems USA, Inc. (NYSE:FIX), and MYR Group Inc (NASDAQ:MYRG). This group of stocks belong to the general contractors industry and their market caps are similar to PIKE's market cap.