NorthWestern Corp (NWE): Are Hedge Funds Right About This Stock?

Page 1 of 2

NorthWestern Corp (NYSE:NWE) has experienced an increase in support from the world’s most elite money managers lately.

NorthWestern Corp (NYSE:NWE)

In the eyes of most investors, hedge funds are seen as worthless, old financial vehicles of the past. While there are more than 8000 funds trading today, we at Insider Monkey choose to focus on the moguls of this club, close to 450 funds. It is estimated that this group controls the majority of the hedge fund industry’s total capital, and by keeping an eye on their best stock picks, we have identified a few investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy beat 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 24 percentage points in 7 months (check out a sample of our picks).

Equally as beneficial, optimistic insider trading sentiment is a second way to parse down the financial markets. As the old adage goes: there are plenty of incentives for an upper level exec to sell shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).

Consequently, we’re going to take a look at the key action encompassing NorthWestern Corp (NYSE:NWE).

How have hedgies been trading NorthWestern Corp (NYSE:NWE)?

In preparation for this year, a total of 9 of the hedge funds we track were bullish in this stock, a change of 13% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully.

Of the funds we track, Phill Gross and Robert Atchinson’s Adage Capital Management had the biggest position in NorthWestern Corp (NYSE:NWE), worth close to $34.7 million, accounting for 0.1% of its total 13F portfolio. Coming in second is Israel Englander of Millennium Management, with a $19.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Mario Gabelli’s GAMCO Investors, Cliff Asness’s AQR Capital Management and D. E. Shaw’s D E Shaw.

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Levin Capital Strategies, managed by John A. Levin, initiated the biggest position in NorthWestern Corp (NYSE:NWE). Levin Capital Strategies had 1.3 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also initiated a $0.3 million position during the quarter.

How are insiders trading NorthWestern Corp (NYSE:NWE)?

Insider buying is best served when the company in question has experienced transactions within the past half-year. Over the latest 180-day time period, NorthWestern Corp (NYSE:NWE) has experienced 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to NorthWestern Corp (NYSE:NWE). These stocks are Otter Tail Corporation (NASDAQ:OTTR), ALLETE Inc (NYSE:ALE), PNM Resources, Inc. (NYSE:PNM), MGE Energy, Inc. (NASDAQ:MGEE), and Avista Corp (NYSE:AVA). This group of stocks are the members of the diversified utilities industry and their market caps resemble NWE’s market cap.

Page 1 of 2
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!