Here is What Hedge Funds Think About Headwaters Inc (NYSE:HW)

Headwaters Inc (NYSE:HW) was in 22 hedge funds’ portfolio at the end of December. HW has seen an increase in support from the world’s most elite money managers lately. There were 15 hedge funds in our database with HW positions at the end of the previous quarter.

Headwaters Inc (NYSE:HW)

According to most market participants, hedge funds are seen as worthless, old investment vehicles of yesteryear. While there are over 8000 funds in operation at present, we at Insider Monkey hone in on the top tier of this group, about 450 funds. It is estimated that this group has its hands on the lion’s share of all hedge funds’ total asset base, and by keeping an eye on their best investments, we have unearthed a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year 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 25 percentage points in 6.5 month (see the details here).

Equally as key, bullish insider trading activity is another way to break down the financial markets. As the old adage goes: there are a variety of incentives for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the valuable potential of this method if “monkeys” know where to look (learn more here).

Now, let’s take a glance at the key action regarding Headwaters Inc (NYSE:HW).

How have hedgies been trading Headwaters Inc (NYSE:HW)?

At year’s end, a total of 22 of the hedge funds we track held long positions in this stock, a change of 47% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.

When looking at the hedgies we track, Eric Edidin and Josh Lobel’s Archer Capital Management had the largest position in Headwaters Inc (NYSE:HW), worth close to $19 million, accounting for 3% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $15 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management.

Now, specific money managers were breaking ground themselves. Visium Asset Management, managed by Jacob Gottlieb, created the biggest position in Headwaters Inc (NYSE:HW). Visium Asset Management had 3 million invested in the company at the end of the quarter. Ken Grossman and Glen Schneider’s SG Capital Management also initiated a $3 million position during the quarter. The other funds with new positions in the stock are Jeffrey Gates’s Gates Capital Management, Jean-Marie Eveillard’s First Eagle Investment Management, and John Murphy’s Alydar Capital.

What do corporate executives and insiders think about Headwaters Inc (NYSE:HW)?

Insider purchases made by high-level executives is best served when the company in question has experienced transactions within the past six months. Over the latest half-year time frame, Headwaters Inc (NYSE:HW) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

With the results demonstrated by our studies, everyday investors should always pay attention to hedge fund and insider trading activity, and Headwaters Inc (NYSE:HW) applies perfectly to this mantra.

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.

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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!