Hedge Funds Are Dumping Domtar Corp (USA) (NYSE:UFS)

Domtar Corp (USA) (NYSE:UFS) investors should pay attention to a decrease in enthusiasm from smart money lately.

Domtar Corp (USA) (NYSE:UFS)

If you’d ask most investors, hedge funds are viewed as underperforming, outdated investment vehicles of the past. While there are over 8000 funds in operation at present, we at Insider Monkey hone in on the leaders of this group, around 450 funds. It is estimated that this group has its hands on most of the smart money’s total capital, and by monitoring their top stock picks, we have found a few investment strategies that have historically outpaced the market. 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 (explore the details and some picks here).

Equally as integral, optimistic insider trading activity is another way to parse down the financial markets. As the old adage goes: there are many stimuli for an upper level exec to downsize shares of his or her company, but just one, very simple reason why they would buy. Various empirical studies have demonstrated the impressive potential of this tactic if you know what to do (learn more here).

With these “truths” under our belt, it’s important to take a peek at the key action encompassing Domtar Corp (USA) (NYSE:UFS).

How have hedgies been trading Domtar Corp (USA) (NYSE:UFS)?

Heading into 2013, a total of 21 of the hedge funds we track were long in this stock, a change of -5% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes considerably.

According to our comprehensive database, Jeffrey Gates’s Gates Capital Management had the largest position in Domtar Corp (USA) (NYSE:UFS), worth close to $76 million, comprising 4.7% of its total 13F portfolio. On Gates Capital Management’s heels is Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, which held a $55 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Some other peers that are bullish include John Burbank’s Passport Capital, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital and Cliff Asness’s AQR Capital Management.

Seeing as Domtar Corp (USA) (NYSE:UFS) has experienced declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedge funds that decided to sell off their entire stakes in Q4. Intriguingly, Craig C. Albert’s Sheffield Asset Management sold off the biggest investment of all the hedgies we monitor, totaling an estimated $9 million in stock., and SAC Subsidiary of CR Intrinsic Investors was right behind this move, as the fund cut about $1 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 1 funds in Q4.

Insider trading activity in Domtar Corp (USA) (NYSE:UFS)

Bullish insider trading is most useful when the company in question has seen transactions within the past 180 days. Over the latest 180-day time period, Domtar Corp (USA) (NYSE:UFS) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s time-tested strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Domtar Corp (USA) (NYSE:UFS) is an important part of this process.

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 Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools 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!