Polypore International, Inc. (NYSE:PPO) has experienced a decrease in hedge fund interest of late. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
To the average investor, there are tons of gauges market participants can use to track publicly traded companies. A couple of the most innovative 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 money managers can outclass the S&P 500 by a superb amount (see just how much).
Just as important, bullish insider trading sentiment is another way to break down the world of equities. There are plenty of incentives for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this method if shareholders understand where to look (learn more here).
Consequently, we're going to take a gander at the recent action regarding Polypore International, Inc. (NYSE:PPO).
Heading into Q2, a total of 12 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With the smart money's positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.
When looking at the hedgies we track, Longview Asset Management, managed by James A. Star, holds the most valuable position in Polypore International, Inc. (NYSE:PPO). Longview Asset Management has a $140.7 million position in the stock, comprising 4.7% of its 13F portfolio. On Longview Asset Management's heels is Generation Investment Management, managed by David Blood and Al Gore, which held a $105.4 million position; 2.1% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Christopher Medlock James's Partner Fund Management, Edward Goodnow's Goodnow Investment Group and John A. Levin's Levin Capital Strategies.
Seeing as Polypore International, Inc. (NYSE:PPO) has faced bearish sentiment from the smart money, logic holds that there exists a select few hedgies that slashed their entire stakes last quarter. Intriguingly, Drew Cupps's Cupps Capital Management said goodbye to the largest stake of all the hedgies we monitor, valued at close to $13.6 million in stock., and James Dondero of Highland Capital Management was right behind this move, as the fund said goodbye to about $5.8 million worth.
Insider purchases made by high-level executives is at its handiest when the company we're looking at has experienced transactions within the past six months. Over the latest half-year time period, Polypore International, Inc. (NYSE:PPO) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
With the results exhibited by the aforementioned studies, retail investors must always monitor hedge fund and insider trading activity, and Polypore International, Inc. (NYSE:PPO) is no exception.