Should You Buy M/I Homes Inc (MHO)?

Page 1 of 2

M/I Homes Inc (NYSE:MHO) was in 14 hedge funds’ portfolio at the end of the first quarter of 2013. MHO has seen an increase in support from the world’s most elite money managers of late. There were 7 hedge funds in our database with MHO positions at the end of the previous quarter.

M/I Homes Inc (NYSE:MHO)To most shareholders, hedge funds are viewed as worthless, outdated investment tools of yesteryear. While there are greater than 8000 funds with their doors open at present, we look at the aristocrats of this group, around 450 funds. It is widely believed that this group has its hands on most of all hedge funds’ total capital, and by watching their top investments, we have formulated a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Just as integral, optimistic insider trading activity is a second way to parse down the financial markets. Just as you’d expect, there are lots of motivations for a corporate insider to cut shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this tactic if you know where to look (learn more here).

With all of this in mind, let’s take a gander at the key action regarding M/I Homes Inc (NYSE:MHO).

What does the smart money think about M/I Homes Inc (NYSE:MHO)?

At the end of the first quarter, a total of 14 of the hedge funds we track held long positions in this stock, a change of 100% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes significantly.

When looking at the hedgies we track, Alydar Capital, managed by John Murphy, holds the largest position in M/I Homes Inc (NYSE:MHO). Alydar Capital has a $31.1 million position in the stock, comprising 2% of its 13F portfolio. Coming in second is Joe DiMenna of ZWEIG DIMENNA PARTNERS, with a $14.8 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management and Geoffrey Raynor’s Q Investments (Specter Holdings).

Now, some big names have jumped into M/I Homes Inc (NYSE:MHO) headfirst. Alydar Capital, managed by John Murphy, created the largest position in M/I Homes Inc (NYSE:MHO). Alydar Capital had 31.1 million invested in the company at the end of the quarter. Bruce Kovner’s Caxton Associates LP also made a $1.6 million investment in the stock during the quarter. The following funds were also among the new MHO investors: Matthew Tewksbury’s Stevens Capital Management, Steven Owsley’s Madison Street Partners, and Matthew Hulsizer’s PEAK6 Capital Management.

How have insiders been trading M/I Homes Inc (NYSE:MHO)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, M/I Homes Inc (NYSE:MHO) has seen 1 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to M/I Homes Inc (NYSE:MHO). These stocks are Meritage Homes Corp (NYSE:MTH), Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN), Beazer Homes USA, Inc. (NYSE:BZH), Gafisa SA (ADR) (NYSE:GFA), and Hovnanian Enterprises, Inc. (NYSE:HOV). This group of stocks belong to the residential construction industry and their market caps are similar to MHO’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

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

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

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!