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Here is What Hedge Funds Think About PulteGroup, Inc. (PHM)

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PulteGroup, Inc. (NYSE:PHM) was in 29 hedge funds’ portfolio at the end of the first quarter of 2013. PHM investors should pay attention to a decrease in activity from the world’s largest hedge funds lately. There were 35 hedge funds in our database with PHM holdings at the end of the previous quarter.

PulteGroup, Inc. (NYSE:PHM)

If you’d ask most investors, hedge funds are perceived as slow, old financial vehicles of yesteryear. While there are over 8000 funds trading at the moment, we at Insider Monkey hone in on the masters of this club, close to 450 funds. Most estimates calculate that this group oversees most of all hedge funds’ total asset base, and by paying attention to their highest performing equity investments, we have found a few investment strategies that have historically outpaced the 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 started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

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With all of this in mind, we’re going to take a glance at the recent action surrounding PulteGroup, Inc. (NYSE:PHM).

What does the smart money think about PulteGroup, Inc. (NYSE:PHM)?

At Q1’s end, a total of 29 of the hedge funds we track were bullish in this stock, a change of -17% from the first quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings considerably.

According to our comprehensive database, Odey Asset Management Group, managed by Crispin Odey, holds the largest position in PulteGroup, Inc. (NYSE:PHM). Odey Asset Management Group has a $150.4 million position in the stock, comprising 5.2% of its 13F portfolio. Sitting at the No. 2 spot is Donald Chiboucis of Columbus Circle Investors, with a $54.2 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Christopher Medlock James’s Partner Fund Management, Cliff Asness’s AQR Capital Management and Douglas Dillard Jr. and Raj D. Venkatesan’s Standard Pacific Capital.

Seeing as PulteGroup, Inc. (NYSE:PHM) has experienced falling interest from the smart money, it’s safe to say that there were a few hedge funds who were dropping their full holdings last quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dumped the largest investment of the “upper crust” of funds we watch, comprising close to $21.1 million in stock.. Andrew Sandler’s fund, Sandler Capital Management, also dumped its stock, about $12.5 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 6 funds last quarter.

How have insiders been trading PulteGroup, Inc. (NYSE:PHM)?

Insider buying is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time period, PulteGroup, Inc. (NYSE:PHM) has experienced zero unique insiders buying, and 9 insider sales (see the details of insider trades here).

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

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