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.

Is PHH Corporation (NYSE:PHH) Going to Burn These Hedge Funds?

Is PHH Corporation (NYSE:PHH) a buy, sell, or hold? Investors who are in the know are getting more optimistic. The number of bullish hedge fund positions improved by 3 lately.

In today’s marketplace, there are plenty of methods shareholders can use to watch the equity markets. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outclass the S&P 500 by a very impressive amount (see just how much).

Just as beneficial, optimistic insider trading activity is a second way to break down the world of equities. As the old adage goes: there are a number of incentives for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if “monkeys” understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the key action regarding PHH Corporation (NYSE:PHH).

How are hedge funds trading PHH Corporation (NYSE:PHH)?

At year’s end, a total of 28 of the hedge funds we track were bullish in this stock, a change of 12% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were increasing their holdings considerably.

Of the funds we track, Pennant Capital Management, managed by Alan Fournier, holds the largest position in PHH Corporation (NYSE:PHH). Pennant Capital Management has a $106 million position in the stock, comprising 2.2% of its 13F portfolio. The second largest stake is held by Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, which held a $98 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Debra Fine’s Fine Capital Partners, Richard S. Pzena’s Pzena Investment Management and John Thiessen’s Vertex One Asset Management.

With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the largest position in PHH Corporation (NYSE:PHH). Arrowstreet Capital had 20 million invested in the company at the end of the quarter. Paul Ruddockáand Steve Heinz’s Lansdowne Partners also made a $19 million investment in the stock during the quarter. The other funds with brand new PHH positions are Philippe Jabre’s Jabre Capital Partners, Dmitry Balyasny’s Balyasny Asset Management, and Louis Bacon’s Moore Global Investments.

How are insiders trading PHH Corporation (NYSE:PHH)?

Insider purchases made by high-level executives is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest 180-day time period, PHH Corporation (NYSE:PHH) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

With the returns shown by our research, everyday investors should always watch hedge fund and insider trading activity, and PHH Corporation (NYSE:PHH) shareholders fit into this picture quite nicely.

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.

Loading Comments...