MeadWestvaco Corp. (NYSE:MWV): Insiders Are Dumping, Should You?

Is MeadWestvaco Corp. (NYSE:MWV) the right pick for your portfolio? Prominent investors are buying. The number of long hedge fund bets inched up by 2 lately.

In the financial world, there are many metrics investors can use to analyze publicly traded companies. Two of the most useful 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 investment managers can outperform their index-focused peers by a very impressive amount (see just how much).

Equally as integral, positive insider trading activity is a second way to break down the stock market universe. As the old adage goes: there are many incentives for a corporate insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this strategy if investors understand what to do (learn more here).

Keeping this in mind, we’re going to take a gander at the recent action encompassing MeadWestvaco Corp. (NYSE:MWV).

What does the smart money think about MeadWestvaco Corp. (NYSE:MWV)?

In preparation for this year, a total of 18 of the hedge funds we track held long positions in this stock, a change of 13% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.

According to our comprehensive database, Nelson Peltz’s Trian Partners had the largest position in MeadWestvaco Corp. (NYSE:MWV), worth close to $51 million, accounting for 2.1% of its total 13F portfolio. On Trian Partners’s heels is Tudor Investment Corp, managed by Paul Tudor Jones, which held a $17 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and Phill Gross and Robert Atchinson’s Adage Capital Management.

As aggregate interest increased, key money managers were breaking ground themselves. Trian Partners, managed by Nelson Peltz, created the largest position in MeadWestvaco Corp. (NYSE:MWV). Trian Partners had 51 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also made a $5 million investment in the stock during the quarter. The other funds with brand new MWV positions are Stephen J. Errico’s Locust Wood Capital Advisers, Geoffrey Raynor’s Q Investments (Specter Holdings), and David Costen Haley’s HBK Investments.

What do corporate executives and insiders think about MeadWestvaco Corp. (NYSE:MWV)?

Insider purchases made by high-level executives is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time period, MeadWestvaco Corp. (NYSE:MWV) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

With the returns shown by our time-tested strategies, retail investors must always pay attention to hedge fund and insider trading activity, and MeadWestvaco Corp. (NYSE:MWV) applies perfectly to this mantra.

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

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!