Oh my. What's a smart The Hain Celestial Group, Inc. (NASDAQ:HAIN) investor to do now, with today's +11% pop?
To many investors, hedge funds are viewed as useless, old investment vehicles of an era lost to time. Although there are In excess of 8,000 hedge funds with their doors open today, this site focuses on the elite of this group, about 525 funds. It is widely held that this group controls the majority of the smart money's total capital, and by keeping an eye on their highest performing investments, we've revealed a few investment strategies that have historically outperformed Mr. Market. 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 started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Just as crucial, bullish insider trading sentiment is another way to look at the financial markets. As the old adage goes: there are a number of reasons for an insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if "monkeys" understand what to do (learn more here).
Furthermore, we're going to analyze the newest info surrounding The Hain Celestial Group, Inc. (NASDAQ:HAIN).
Heading into Q3, a total of 18 of the hedge funds we track were long in this stock, a change of -5% from the previous quarter. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were upping their holdings significantly.
When using filings from the hedgies we track, Carl Icahn's Icahn Capital LP had the most valuable position in The Hain Celestial Group, Inc. (NASDAQ:HAIN), worth close to $470.4 million, accounting for 2.2% of its total 13F portfolio. The second largest stake is held by Coatue Management, managed by Philippe Laffont, which held a $137.4 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Some other peers that are bullish include Donald Chiboucis's Columbus Circle Investors, Glenn Russell Dubin's Highbridge Capital Management and Glenn J. Krevlin's Glenhill Advisors.
As The Hain Celestial Group, Inc. (NASDAQ:HAIN) has experienced bearish sentiment from upper-tier hedge fund managers, logic holds that there is a sect of hedgies that decided to sell off their full holdings last quarter. It's worth mentioning that Ward Davis's Caerus Global Investors dumped the largest investment of the "upper crust" of funds we monitor, worth an estimated $2.5 million in stock. Israel Englander's fund, Millennium Management, also dropped its stock, about $2.5 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds last quarter.
Insider buying is particularly usable when the company we're looking at has experienced transactions within the past half-year. Over the last 180-day time period, The Hain Celestial Group, Inc. (NASDAQ:HAIN) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to The Hain Celestial Group, Inc. (NASDAQ:HAIN). These stocks are Snyder S Lance Inc (NASDAQ:LNCE), Flowers Foods, Inc. (NYSE:FLO), Hillshire Brands Co (NYSE:HSH), TreeHouse Foods Inc. (NYSE:THS), and Gruma S.A.B. de C.V. (ADR) (NYSE:GMK). This group of stocks belong to the processed & packaged goods industry and their market caps resemble HAIN's market cap.