Hedge Funds Are Crazy About Southwest Gas Corporation (SWX)

Page 1 of 2

Southwest Gas Corporation (NYSE:SWX) investors should pay attention to an increase in hedge fund sentiment in recent months.

In the eyes of most market participants, hedge funds are perceived as unimportant, outdated financial tools of years past. While there are greater than 8000 funds with their doors open today, we hone in on the upper echelon of this club, close to 450 funds. It is widely believed that this group oversees the lion’s share of the hedge fund industry’s total asset base, and by monitoring their top stock picks, we have unsheathed a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum 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 outperformed the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Just as integral, positive insider trading activity is a second way to parse down the marketplace. Just as you’d expect, there are many motivations for an insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if you know where to look (learn more here).

Consequently, let’s take a look at the latest action encompassing Southwest Gas Corporation (NYSE:SWX).

What does the smart money think about Southwest Gas Corporation (NYSE:SWX)?

In preparation for this quarter, a total of 16 of the hedge funds we track were long in this stock, a change of 23% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes meaningfully.

Of the funds we track, Mario Gabelli’s GAMCO Investors had the biggest position in Southwest Gas Corporation (NYSE:SWX), worth close to $70 million, accounting for 0.4% of its total 13F portfolio. On GAMCO Investors’s heels is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $63.6 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other peers that are bullish include Jim Simons’s Renaissance Technologies, Thomas M. Fitzgerald’s Longbow Capital Partners and Ken Gray and Steve Walsh’s Bryn Mawr Capital.

Now, specific money managers have been driving this bullishness. Longbow Capital Partners, managed by Thomas M. Fitzgerald, created the most outsized position in Southwest Gas Corporation (NYSE:SWX). Longbow Capital Partners had 2.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.7 million position during the quarter. The other funds with new positions in the stock are Alec Litowitz and Ross Laser’s Magnetar Capital and Paul Tudor Jones’s Tudor Investment Corp.

What have insiders been doing with Southwest Gas Corporation (NYSE:SWX)?

Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time period, Southwest Gas Corporation (NYSE:SWX) has seen 1 unique insiders purchasing, and 11 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Southwest Gas Corporation (NYSE:SWX). These stocks are New Jersey Resources Corp (NYSE:NJR), Suburban Propane Partners LP (NYSE:SPH), Piedmont Natural Gas Company, Inc. (NYSE:PNY), WGL Holdings Inc (NYSE:WGL), and Atlas Energy LP (NYSE:ATLS). This group of stocks are in the gas utilities industry and their market caps are similar to SWX’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

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!