SUPERVALU INC. (NYSE:SVU): Are Hedge Funds Right About This Stock?

SUPERVALU INC. (NYSE:SVU) investors should be aware of a decrease in enthusiasm from smart money recently.

According to most traders, hedge funds are seen as underperforming, old financial vehicles of years past. While there are greater than 8000 funds trading at the moment, we at Insider Monkey look at the masters of this club, close to 450 funds. It is widely believed that this group oversees the lion’s share of the smart money’s total asset base, and by keeping an eye on their highest performing equity investments, we have found a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

SUPERVALU INC.Just as important, bullish insider trading activity is a second way to break down the financial markets. There are lots of reasons for an executive to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this strategy if piggybackers know what to do (learn more here).

With all of this in mind, let’s take a glance at the latest action surrounding SUPERVALU INC. (NYSE:SVU).

What have hedge funds been doing with SUPERVALU INC. (NYSE:SVU)?

At the end of the fourth quarter, a total of 21 of the hedge funds we track held long positions in this stock, a change of -13% from the third quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Philippe Laffont’s Coatue Management had the largest position in SUPERVALU INC. (NYSE:SVU), worth close to $25 million, comprising 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Saba Capital, managed by Boaz Weinstein, which held a $20 million position; 2.2% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Don Morgan’s Brigade Capital and Jeffrey Altman’s Owl Creek Asset Management.

Because SUPERVALU INC. (NYSE:SVU) has witnessed declining sentiment from the aggregate hedge fund industry, we can see that there was a specific group of fund managers that slashed their entire stakes heading into 2013. Intriguingly, Lee Ainslie’s Maverick Capital said goodbye to the biggest stake of the 450+ funds we watch, valued at an estimated $21 million in stock., and Steven Tananbaum of GoldenTree Asset Management was right behind this move, as the fund said goodbye to about $10 million worth. These transactions are interesting, as total hedge fund interest dropped by 3 funds heading into 2013.

What have insiders been doing with SUPERVALU INC. (NYSE:SVU)?

Insider purchases made by high-level executives is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time period, SUPERVALU INC. (NYSE:SVU) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

With the returns demonstrated by Insider Monkey’s time-tested strategies, retail investors should always pay attention to hedge fund and insider trading activity, and SUPERVALU INC. (NYSE:SVU) is no exception.

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 10 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

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!