Hedge Funds Are Crazy About Tredegar Corporation (TG)

Tredegar Corporation (NYSE:TG) has experienced an increase in activity from the world’s largest hedge funds recently.

At the moment, there are a multitude of gauges shareholders can use to watch their holdings. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outclass their index-focused peers by a superb amount (see just how much).

Just as key, bullish insider trading sentiment is another way to break down the stock market universe. As the old adage goes: there are lots of reasons for a bullish insider to get rid of 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 tactic if you understand where to look (learn more here).

Keeping this in mind, we’re going to take a look at the key action encompassing Tredegar Corporation (NYSE:TG).

What does the smart money think about Tredegar Corporation (NYSE:TG)?

At the end of the first quarter, a total of 9 of the hedge funds we track were long in this stock, a change of 50% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings meaningfully.

According to our comprehensive database, Mario Gabelli’s GAMCO Investors had the most valuable position in Tredegar Corporation (NYSE:TG), worth close to $99.5 million, comprising 0.6% of its total 13F portfolio. On GAMCO Investors’s heels is Cliff Asness of AQR Capital Management, with a $1.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Matthew Hulsizer’s PEAK6 Capital Management, D. E. Shaw’s D E Shaw and Jim Simons’s Renaissance Technologies.

As one would reasonably expect, specific money managers have been driving this bullishness. PEAK6 Capital Management, managed by Matthew Hulsizer, assembled the most outsized call position in Tredegar Corporation (NYSE:TG). PEAK6 Capital Management had 0.4 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also made a $0.3 million investment in the stock during the quarter. The only other fund with a new position in the stock is Paul Tudor Jones’s Tudor Investment Corp.

What have insiders been doing with Tredegar Corporation (NYSE:TG)?

Bullish insider trading is best served when the company in focus has experienced transactions within the past half-year. Over the last 180-day time period, Tredegar Corporation (NYSE:TG) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Tredegar Corporation (NYSE:TG). These stocks are Berry Plastics Group Inc (NYSE:BERY), Myers Industries, Inc. (NYSE:MYE), Cooper Tire & Rubber Company (NYSE:CTB), Titan International Inc (NYSE:TWI), and Rogers Corporation (NYSE:ROG). This group of stocks are the members of the rubber & plastics industry and their market caps match TG’s market cap.