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 Patrick Industries, Inc. (PATK)

Page 1 of 2

Patrick Industries, Inc. (NASDAQ:PATK) has experienced an increase in enthusiasm from smart money in recent months.

In the eyes of most investors, hedge funds are perceived as worthless, old financial vehicles of the past. While there are greater than 8000 funds trading at the moment, we at Insider Monkey hone in on the masters of this group, around 450 funds. It is estimated that this group has its hands on the majority of all hedge funds’ total capital, and by tracking their highest performing investments, we have deciphered a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 topped the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Richard Driehaus

Just as beneficial, optimistic insider trading activity is another way to parse down the stock market universe. As the old adage goes: there are lots of motivations for an executive to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this method if investors know what to do (learn more here).

With all of this in mind, it’s important to take a glance at the key action surrounding Patrick Industries, Inc. (NASDAQ:PATK).

How have hedgies been trading Patrick Industries, Inc. (NASDAQ:PATK)?

At the end of the fourth quarter, a total of 6 of the hedge funds we track were bullish in this stock, a change of 50% from the third quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially.

Of the funds we track, Jeffrey Gendell’s Tontine Asset Management had the biggest position in Patrick Industries, Inc. (NASDAQ:PATK), worth close to $66.2 million, accounting for 16.6% of its total 13F portfolio. The second largest stake is held by Driehaus Capital, managed by Richard Driehaus, which held a $2.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, Jim Simons’s Renaissance Technologies and Andy Redleaf’s Whitebox Advisors.

With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Driehaus Capital, managed by Richard Driehaus, created the largest position in Patrick Industries, Inc. (NASDAQ:PATK). Driehaus Capital had 2.4 million invested in the company at the end of the quarter. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also made a $0.9 million investment in the stock during the quarter. The only other fund with a new position in the stock is Cliff Asness’s AQR Capital Management.

What do corporate executives and insiders think about Patrick Industries, Inc. (NASDAQ:PATK)?

Insider purchases made by high-level executives is best served when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time frame, Patrick Industries, Inc. (NASDAQ:PATK) has experienced 1 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Patrick Industries, Inc. (NASDAQ:PATK). These stocks are Rayonier Inc. (NYSE:RYN), Advanced Environmental Recycling Tech. (PINK:AERT), Jewett-Cameron Trading Co Ltd. (NASDAQ:JCTCF), Deltic Timber Corp (NYSE:DEL), and Pope Resources L.P. (NASDAQ:POPE). This group of stocks are in the lumber, wood production industry and their market caps resemble PATK’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!