Is Beazer Homes USA, Inc. (NYSE:BZH) Going to Burn These Hedge Funds?

Is Beazer Homes USA, Inc. (NYSE:BZH) a superb stock to buy now? The best stock pickers are taking a bullish view. The number of long hedge fund positions went up by 1 recently.

In the 21st century investor’s toolkit, there are dozens of gauges market participants can use to analyze Mr. Market. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can trounce the S&P 500 by a significant amount (see just how much).

Beazer Homes USA, Inc. (NYSE:BZH)Just as beneficial, positive insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are a variety of incentives for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this method if “monkeys” understand where to look (learn more here).

With these “truths” under our belt, it’s important to take a gander at the recent action encompassing Beazer Homes USA, Inc. (NYSE:BZH).

How are hedge funds trading Beazer Homes USA, Inc. (NYSE:BZH)?

At the end of the fourth quarter, a total of 16 of the hedge funds we track were bullish in this stock, a change of 7% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings significantly.

According to our comprehensive database, Glenn Russell Dubin’s Highbridge Capital Management had the most valuable position in Beazer Homes USA, Inc. (NYSE:BZH), worth close to $27 million, accounting for 0.4% of its total 13F portfolio. The second largest stake is held by David Tepper of Appaloosa Management LP, with a $22 million position; 0.4% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Randall Smith’s Alden Global Capital, Donald Chiboucis’s Columbus Circle Investors and Don Morgan’s Brigade Capital.

As industrywide interest jumped, key money managers have jumped into Beazer Homes USA, Inc. (NYSE:BZH) headfirst. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the most valuable position in Beazer Homes USA, Inc. (NYSE:BZH). Highbridge Capital Management had 27 million invested in the company at the end of the quarter. David Tepper’s Appaloosa Management LP also initiated a $22 million position during the quarter. The other funds with new positions in the stock are Randall Smith’s Alden Global Capital, Donald Chiboucis’s Columbus Circle Investors, and Don Morgan’s Brigade Capital.

What do corporate executives and insiders think about Beazer Homes USA, Inc. (NYSE:BZH)?

Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time period, Beazer Homes USA, Inc. (NYSE:BZH) has experienced 9 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s research, everyday investors must always pay attention to hedge fund and insider trading activity, and Beazer Homes USA, Inc. (NYSE:BZH) is an important part of this process.

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.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

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!