Hedge Funds Aren’t Crazy About NVR, Inc. (NYSE:NVR) Anymore

NVR, Inc. (NYSE:NVR) investors should pay attention to a decrease in hedge fund sentiment recently.

NVR, Inc. (NYSE:NVR)

In the financial world, there are tons of methods market participants can use to track stocks. Two of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outperform the broader indices by a superb amount (see just how much).

Just as beneficial, bullish insider trading sentiment is a second way to parse down the investments you’re interested in. Obviously, there are plenty of stimuli for an executive to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this tactic if investors know what to do (learn more here).

Keeping this in mind, we’re going to take a peek at the recent action encompassing NVR, Inc. (NYSE:NVR).

How are hedge funds trading NVR, Inc. (NYSE:NVR)?

At year’s end, a total of 18 of the hedge funds we track were bullish in this stock, a change of -18% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.

Of the funds we track, Alan Fournier’s Pennant Capital Management had the most valuable position in NVR, Inc. (NYSE:NVR), worth close to $239 million, comprising 5% of its total 13F portfolio. Coming in second is Maverick Capital, managed by Lee Ainslie, which held a $193 million position; 0% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Jason Capello’s Merchants’ Gate Capital, Robert Bishop’s Impala Asset Management and Ken Griffin’s Citadel Investment Group.

Seeing as NVR, Inc. (NYSE:NVR) has faced declining sentiment from hedge fund managers, we can see that there was a specific group of fund managers that decided to sell off their full holdings last quarter. At the top of the heap, Richard Chilton’s Chilton Investment Company cut the largest position of the 450+ funds we track, worth an estimated $6 million in stock.. Eric D. Hovde’s fund, Hovde Capital, also dropped its stock, about $5 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 4 funds last quarter.

Insider trading activity in NVR, Inc. (NYSE:NVR)

Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the latest six-month time period, NVR, Inc. (NYSE:NVR) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s time-tested strategies, everyday investors should always watch hedge fund and insider trading activity, and NVR, Inc. (NYSE:NVR) 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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!