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.

Here is What Hedge Funds Think About D.R. Horton, Inc. (DHI)

Page 1 of 2

D.R. Horton, Inc. (NYSE:DHI) was in 29 hedge funds’ portfolio at the end of the first quarter of 2013. DHI investors should be aware of a decrease in support from the world’s most elite money managers lately. There were 30 hedge funds in our database with DHI positions at the end of the previous quarter.

According to most stock holders, hedge funds are perceived as worthless, old investment tools of years past. While there are over 8000 funds in operation at the moment, we choose to focus on the upper echelon of this group, around 450 funds. It is estimated that this group oversees the lion’s share of the hedge fund industry’s total asset base, and by paying attention to their top stock picks, we have found a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

D.R. Horton, Inc.Equally as beneficial, bullish insider trading activity is another way to break down the marketplace. There are lots of reasons for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).

With all of this in mind, let’s take a gander at the key action encompassing D.R. Horton, Inc. (NYSE:DHI).

Hedge fund activity in D.R. Horton, Inc. (NYSE:DHI)

In preparation for this quarter, a total of 29 of the hedge funds we track were long in this stock, a change of -3% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Capital Growth Management, managed by Ken Heebner, holds the most valuable position in D.R. Horton, Inc. (NYSE:DHI). Capital Growth Management has a $147.9 million position in the stock, comprising 3.7% of its 13F portfolio. On Capital Growth Management’s heels is Crispin Odey of Odey Asset Management Group, with a $129.7 million position; 4.5% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Stanley Druckenmiller’s Duquesne Capital, Ken Griffin’s Citadel Investment Group and Joe DiMenna’s ZWEIG DIMENNA PARTNERS.

Because D.R. Horton, Inc. (NYSE:DHI) has witnessed falling interest from the smart money, it’s easy to see that there were a few fund managers that decided to sell off their positions entirely in Q1. Intriguingly, Jim Simons’s Renaissance Technologies said goodbye to the largest position of all the hedgies we monitor, valued at about $31.6 million in stock., and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund dropped about $6.4 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 1 funds in Q1.

What have insiders been doing with D.R. Horton, Inc. (NYSE:DHI)?

Insider purchases made by high-level executives is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest six-month time period, D.R. Horton, Inc. (NYSE:DHI) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to D.R. Horton, Inc. (NYSE:DHI). These stocks are The Ryland Group, Inc. (NYSE:RYL), NVR, Inc. (NYSE:NVR), Toll Brothers Inc (NYSE:TOL), Lennar Corporation (NYSE:LEN), and PulteGroup, Inc. (NYSE:PHM). This group of stocks belong to the residential construction industry and their market caps are similar to DHI’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!