Louisiana-Pacific Corporation (NYSE:LPX) investors should pay attention to a decrease in hedge fund interest recently.
At the moment, there are dozens of gauges investors can use to monitor stocks. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can outperform the S&P 500 by a significant amount (see just how much).
Equally as beneficial, bullish insider trading activity is a second way to break down the marketplace. Just as you’d expect, there are lots of motivations for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if “monkeys” know what to do (learn more here).
With these “truths” under our belt, it’s important to take a look at the latest action regarding Louisiana-Pacific Corporation (NYSE:LPX).
Hedge fund activity in Louisiana-Pacific Corporation (NYSE:LPX)
At year’s end, a total of 25 of the hedge funds we track held long positions in this stock, a change of 0% from the third quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.
When looking at the hedgies we track, Robert Bishop’s Impala Asset Management had the biggest position in Louisiana-Pacific Corporation (NYSE:LPX), worth close to $85 million billion, comprising 4.5% of its total 13F portfolio. The second largest stake is held by Crispin Odey of Odey Asset Management Group, with a $83 million position; the fund has 4.9% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Randall Smith’s Alden Global Capital, Dan Loeb’s Third Point and Donald Chiboucis’s Columbus Circle Investors.
Seeing as Louisiana-Pacific Corporation (NYSE:LPX) has faced a declination in interest from hedge fund managers, it’s easy to see that there was a specific group of funds that decided to sell off their entire stakes heading into 2013. At the top of the heap, Kevin Michael Ulrich’s Anchorage Advisors dumped the biggest stake of the “upper crust” of funds we key on, valued at about $34 million in stock.. Christopher MedlockáJames’s fund, Partner Fund Management, also cut its stock, about $19 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Louisiana-Pacific Corporation (NYSE:LPX)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Louisiana-Pacific Corporation (NYSE:LPX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns shown by the aforementioned tactics, everyday investors should always monitor hedge fund and insider trading sentiment, and Louisiana-Pacific Corporation (NYSE:LPX) 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.