Lennar Corporation (NYSE:LEN): Hedge Funds and Insiders Are Bearish, What Should You Do?

Is Lennar Corporation (NYSE:LEN) a worthy investment today? The smart money is reducing their bets on the stock. The number of bullish hedge fund positions were cut by 4 recently.

Lennar Corporation (LEN)

In today’s marketplace, there are dozens of methods shareholders 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 top picks of the top hedge fund managers can outclass their index-focused peers by a superb amount (see just how much).

Just as key, positive insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are plenty of reasons for a corporate 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 tactic if piggybackers understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the recent action encompassing Lennar Corporation (NYSE:LEN).

What does the smart money think about Lennar Corporation (NYSE:LEN)?

Heading into 2013, a total of 44 of the hedge funds we track held long positions in this stock, a change of -8% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were upping their holdings meaningfully.

When looking at the hedgies we track, Capital Growth Management, managed by Ken Heebner, holds the most valuable position in Lennar Corporation (NYSE:LEN). Capital Growth Management has a $188 million position in the stock, comprising 4.9% of its 13F portfolio. The second largest stake is held by Duquesne Capital, managed by Stanley Druckenmiller, which held a $108 million position; the fund has 8.4% of its 13F portfolio invested in the stock. Some other peers that are bullish include Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies and Jeffrey Vinik’s Vinik Asset Management.

Because Lennar Corporation (NYSE:LEN) has witnessed a declination in interest from the smart money, logic holds that there is a sect of funds who were dropping their entire stakes in Q4. Intriguingly, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners said goodbye to the biggest position of the “upper crust” of funds we track, worth close to $20 million in stock.. Peter J. Eichler Jr.’s fund, Aletheia Research and Management, also dumped its stock, about $18 million worth. These transactions are important to note, as total hedge fund interest was cut by 4 funds in Q4.

What do corporate executives and insiders think about Lennar Corporation (NYSE:LEN)?

Insider purchases made by high-level executives is at its handiest when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time period, Lennar Corporation (NYSE:LEN) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns exhibited by our time-tested strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Lennar Corporation (NYSE:LEN) is no exception.

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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!