Hedge Funds Aren’t Crazy About Sturm, Ruger & Company (RGR) Anymore

Page 1 of 2

Sturm, Ruger & Company (NYSE:RGR) shareholders have witnessed a decrease in enthusiasm from smart money of late.

To most traders, hedge funds are viewed as slow, old financial tools of years past. While there are greater than 8000 funds in operation today, we choose to focus on the upper echelon of this group, close to 450 funds. It is estimated that this group has its hands on the majority of all hedge funds’ total capital, and by paying attention to their best stock picks, we have uncovered a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum 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 beaten the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Just as key, optimistic insider trading sentiment is another way to parse down the stock market universe. As the old adage goes: there are lots of motivations for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this tactic if piggybackers understand what to do (learn more here).

With these “truths” under our belt, it’s important to take a gander at the recent action encompassing Sturm, Ruger & Company (NYSE:RGR).

What have hedge funds been doing with Sturm, Ruger & Company (NYSE:RGR)?

At Q1′s end, a total of 16 of the hedge funds we track held long positions in this stock, a change of -11% 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 boosting their holdings substantially.

Sturm, Ruger & CompanyOf the funds we track, Rob Butts and Josh Clark’s Southpoint Capital Advisors had the biggest position in Sturm, Ruger & Company (NYSE:RGR), worth close to $15.4 million, comprising 1% of its total 13F portfolio. On Southpoint Capital Advisors’s heels is Hound Partners, managed by Jonathan Auerbach, which held a $11.4 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Some other peers that are bullish include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.

Because Sturm, Ruger & Company (NYSE:RGR) has witnessed bearish sentiment from the smart money, we can see that there is a sect of hedgies who were dropping their positions entirely in Q1. It’s worth mentioning that Chase Coleman and Feroz Dewan’s Tiger Global Management LLC dumped the biggest investment of the 450+ funds we key on, valued at about $36.3 million in stock., and Robert Bishop of Impala Asset Management was right behind this move, as the fund dropped about $24.9 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 2 funds in Q1.

How are insiders trading Sturm, Ruger & Company (NYSE:RGR)?

Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has seen transactions within the past six months. Over the latest 180-day time frame, Sturm, Ruger & Company (NYSE:RGR) has seen zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Sturm, Ruger & Company (NYSE:RGR). These stocks are Smith & Wesson Holding Corporation (NASDAQ:SWHC), AAR Corp. (NYSE:AIR), Kaman Corporation (NYSE:KAMN), and Orbital Sciences Corp (NYSE:ORB). All of these stocks are in the aerospace/defense products & services industry and their market caps are similar to RGR’s market cap.

Page 1 of 2
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 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

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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!