Jarden Corp (NYSE:JAH) has seen an increase in activity from the world’s largest hedge funds lately.
To most stock holders, hedge funds are assumed to be worthless, outdated investment tools of years past. While there are greater than 8000 funds in operation at the moment, we choose to focus on the bigwigs of this club, around 450 funds. It is widely believed that this group has its hands on most of all hedge funds’ total asset base, and by tracking their highest performing stock picks, we have found a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Just as key, optimistic insider trading sentiment is another way to parse down the world of equities. Just as you’d expect, there are a variety of incentives for an insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this tactic if piggybackers know what to do (learn more here).
Keeping this in mind, it’s important to take a gander at the recent action surrounding Jarden Corp (NYSE:JAH).
What have hedge funds been doing with Jarden Corp (NYSE:JAH)?
At year’s end, a total of 21 of the hedge funds we track held long positions in this stock, a change of 11% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, Horizon Asset Management, managed by Murray Stahl, holds the largest position in Jarden Corp (NYSE:JAH). Horizon Asset Management has a $164 million position in the stock, comprising 5.1% of its 13F portfolio. On Horizon Asset Management’s heels is Citadel Investment Group, managed by Ken Griffin, which held a $64 million position; 0.3% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Ken Fisher’s Fisher Asset Management, Israel Englander’s Millennium Management and Crispin Odey’s Odey Asset Management Group.
Now, key hedge funds were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, established the biggest position in Jarden Corp (NYSE:JAH). Alyeska Investment Group had 7 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $6 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, SAC Subsidiary’s CR Intrinsic Investors, and Steven Cohen’s SAC Capital Advisors.
How have insiders been trading Jarden Corp (NYSE:JAH)?
Insider purchases made by high-level executives is particularly usable when the company in focus has experienced transactions within the past half-year. Over the last 180-day time frame, Jarden Corp (NYSE:JAH) has seen zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Jarden Corp (NYSE:JAH) shareholders fit into this picture quite nicely.
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.