Is Sealed Air Corp (NYSE:SEE) ready to raly soon? Money managers are becoming less hopeful. The number of bullish hedge fund positions decreased by 2 lately.
In today’s marketplace, there are many indicators shareholders can use to monitor stocks. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the S&P 500 by a solid margin (see just how much).
Equally as beneficial, optimistic insider trading sentiment is another way to break down the stock market universe. As the old adage goes: there are plenty of stimuli for an executive to cut shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, let’s take a gander at the latest action surrounding Sealed Air Corp (NYSE:SEE).
Hedge fund activity in Sealed Air Corp (NYSE:SEE)
Heading into 2013, a total of 25 of the hedge funds we track held long positions in this stock, a change of -7% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.
According to our comprehensive database, International Value Advisers, managed by Charles de Vaulx, holds the largest position in Sealed Air Corp (NYSE:SEE). International Value Advisers has a $57 million position in the stock, comprising 1.3% of its 13F portfolio. Sitting at the No. 2 spot is Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, which held a $52 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include David Tepper’s Appaloosa Management LP, Thomas Ellis and Todd Hammer’s North Run Capital and Glenn J. Krevlin’s Glenhill Advisors.
Due to the fact that Sealed Air Corp (NYSE:SEE) has faced declining sentiment from the smart money, it’s easy to see that there exists a select few hedge funds who were dropping their full holdings heading into 2013. Interestingly, Alexander Roepers’s Atlantic Investment Management said goodbye to the largest position of the “upper crust” of funds we key on, totaling close to $27 million in stock.. John Fichthorn’s fund, Dialectic Capital Management, also said goodbye to its call options., about $3 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 2 funds heading into 2013.
What do corporate executives and insiders think about Sealed Air Corp (NYSE:SEE)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the last six-month time period, Sealed Air Corp (NYSE:SEE) has seen 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey’s time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Sealed Air Corp (NYSE:SEE) is no exception.
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.