To many investors, hedge funds are viewed as overrated, old financial tools of an era lost to time. Although there are more than 8,000 hedge funds trading in present day, Insider Monkey looks at the crème de la crème of this club, about 525 funds. It is assumed that this group oversees the majority of the hedge fund industry’s total capital, and by paying attention to their best equity investments, we’ve identified a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 outclassed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Equally as useful, bullish insider trading activity is another way to look at the stock market universe. There are lots of stimuli for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this tactic if piggybackers understand where to look (learn more here).
What’s more, let’s analyze the newest info for Haynes International, Inc. (NASDAQ:HAYN).
What have hedge funds been doing with Haynes International, Inc. (NASDAQ:HAYN)?
In preparation for the third quarter, a total of 6 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially.
According to our 13F database, Royce & Associates, managed by Chuck Royce, holds the biggest position in Haynes International, Inc. (NASDAQ:HAYN). Royce & Associates has a $43.6 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $5.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers with similar optimism include Mario Gabelli’s GAMCO Investors, John Overdeck and David Siegel’s Two Sigma Advisors and Joel Greenblatt’s Gotham Asset Management.
Insider trading activity in Haynes International, Inc. (NASDAQ:HAYN)
Insider buying made by high-level executives is most useful when the company in focus has seen transactions within the past half-year. Over the last 180-day time frame, Haynes International, Inc. (NASDAQ:HAYN) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Haynes International, Inc. (NASDAQ:HAYN). These stocks are AZZ Incorporated (NYSE:AZZ), Park-Ohio Holdings Corp. (NASDAQ:PKOH), A M Castle and Co (NYSE:CAS), Matthews International Corp (NASDAQ:MATW), and Schnitzer Steel Industries, Inc. (NASDAQ:SCHN). This group of stocks are the members of the metal fabrication industry and their market caps resemble HAYN’s market cap.