Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Aren’t Crazy About Nortek Inc (NTK) Anymore

Page 1 of 2

Is Nortek Inc (NASDAQ:NTK) a first-rate stock to buy now? Money managers are becoming less confident. The number of long hedge fund positions were trimmed by 1 lately.


In today’s marketplace, there are tons of methods investors can use to watch their holdings. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform the broader indices by a very impressive amount (see just how much).

Equally as beneficial, bullish insider trading sentiment is another way to break down the investments you’re interested in. Obviously, there are a number of motivations for an insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if piggybackers know what to do (learn more here).

With all of this in mind, it’s important to take a look at the key action surrounding Nortek Inc (NASDAQ:NTK).

What have hedge funds been doing with Nortek Inc (NASDAQ:NTK)?

At the end of the fourth quarter, a total of 6 of the hedge funds we track were long in this stock, a change of -14% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.

According to our comprehensive database, Jeffrey Gates’s Gates Capital Management had the biggest position in Nortek Inc (NASDAQ:NTK), worth close to $132.1 million, comprising 8.3% of its total 13F portfolio. Coming in second is Anchorage Advisors, managed by Kevin Michael Ulrich, which held a $90.6 million position; 3.3% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Meridee A. Moore’s Watershed Asset Management, Joel Greenblatt’s Gotham Asset Management and D. E. Shaw’s D E Shaw.

Due to the fact that Nortek Inc (NASDAQ:NTK) has faced falling interest from the smart money, it’s easy to see that there lies a certain “tier” of hedge funds that decided to sell off their entire stakes in Q4. At the top of the heap, Nancy Havens-Hasty’s Havens Advisors dropped the largest position of the “upper crust” of funds we watch, comprising about $1.8 million in stock. These bearish behaviors are interesting, as total hedge fund interest dropped by 1 funds in Q4.

Insider trading activity in Nortek Inc (NASDAQ:NTK)

Insider buying is best served when the company in focus has seen transactions within the past half-year. Over the last 180-day time period, Nortek Inc (NASDAQ:NTK) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Nortek Inc (NASDAQ:NTK). These stocks are Griffon Corporation (NYSE:GFF), Universal Forest Products, Inc. (NASDAQ:UFPI), Headwaters Inc (NYSE:HW), Apogee Enterprises, Inc. (NASDAQ:APOG), and Trex Company, Inc. (NYSE:TREX). All of these stocks are in the general building materials industry and their market caps are closest to NTK’s market cap.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!