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.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!