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

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

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

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!