Hedge Funds Are Buying W.R. Grace & Co. (GRA)

Page 1 of 2

W.R. Grace & Co. (NYSE:GRA) has seen an increase in hedge fund sentiment lately.

W.R. Grace & Co. (NYSE:GRA)

To most market participants, hedge funds are seen as slow, old investment vehicles of the past. While there are over 8000 funds in operation today, we choose to focus on the masters of this group, around 450 funds. It is widely believed that this group oversees most of the smart money’s total asset base, and by keeping an eye on their highest performing stock picks, we have deciphered a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced 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 beaten the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as integral, positive insider trading activity is another way to break down the marketplace. There are many reasons for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this strategy if piggybackers understand where to look (learn more here).

Now, it’s important to take a glance at the recent action regarding W.R. Grace & Co. (NYSE:GRA).

How are hedge funds trading W.R. Grace & Co. (NYSE:GRA)?

Heading into Q2, a total of 46 of the hedge funds we track were long in this stock, a change of 10% from the first quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings substantially.

According to our comprehensive database, David Cohen and Harold Levy’s Iridian Asset Management had the largest position in W.R. Grace & Co. (NYSE:GRA), worth close to $278.8 million, accounting for 4.1% of its total 13F portfolio. Coming in second is John Griffin of Blue Ridge Capital, with a $232.5 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Richard Chilton’s Chilton Investment Company, Jonathan Auerbach’s Hound Partners and Daniel S. Och’s OZ Management.

With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Lone Pine Capital, managed by Stephen Mandel, created the most valuable position in W.R. Grace & Co. (NYSE:GRA). Lone Pine Capital had 115.8 million invested in the company at the end of the quarter. George Soros’s Soros Fund Management also made a $22.5 million investment in the stock during the quarter. The other funds with new positions in the stock are SAC Subsidiary’s CR Intrinsic Investors, James Pallotta’s Raptor Capital Management, and Mark Kingdon’s Kingdon Capital.

Insider trading activity in W.R. Grace & Co. (NYSE:GRA)

Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest six-month time period, W.R. Grace & Co. (NYSE:GRA) has seen zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to W.R. Grace & Co. (NYSE:GRA). These stocks are Rockwood Holdings, Inc. (NYSE:ROC), Westlake Chemical Corporation (NYSE:WLK), International Flavors & Fragrances Inc (NYSE:IFF), The Valspar Corporation (NYSE:VAL), and Albemarle Corporation (NYSE:ALB). This group of stocks are the members of the specialty chemicals industry and their market caps resemble GRA’s market cap.

Page 1 of 2
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 Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!