Two Small-Cap D.E. Shaw’s Picks with Insider Purchasing

Recent studies have shown that small-cap hedge fund picks tend to outperform the wider market by a small margin. If we add insider bullishness to this equation, chances of success become greater. Thus, let’s take a look at two of D E Shaw‘s small new positions (in which other investors such as, Ken Griffin and Jim Simons also hold stakes) that have also seen their insiders buy their stock lately.

David E. Shaw

Winmark Corporation (NASDAQ:WINA) is a $400 million market cap franchisor of four value-oriented retail store concepts that buy, sell, trade and consign merchandise. On March 21, John L. Morgan, Chairman, CEO and 10% owner of the company’s stock acquired 1,500 shares of Common Stock for $77.46 per share. He now owns more than 1.67 million shares, worth more than $130 million.

Mr. Morgan’s bet is quite comprehensible, given Winmark’s industry leading margins and returns, coupled with a below-average valuation.

 

Winmark

Source: Morningstar

In addition to this insider, Brian Bares‘ Bares Capital Management holds 833,650 shares of the company, which comprise more than 6% of its equity portfolio’s value. In turn, Jim Simons owns 92,000 shares, after recently increasing his stakes by 10%.

The other company that makes it to this list is Miller Energy Resources Inc (NYSE:MILL), a $243 million market cap oil and gas exploration and production company that utilizes seismic data and other technologies for geophysical exploration and development of wells. On April 17, Bob Gower, Board Director, acquired 10,000 shares of Common Stock for $5.25 per share. He now owns 75,000 shares of the company. In addition, Matthew Hulsizer holds 105,057 shares, after increasing his bets by 14% over the last reported quarter.  For his part, Cliff Asness just recently started a position in the stock with 83,841 shares. D.E. Shaw owns 22,868 shares of Miller Energy Resources, and 2,582 shares of Winmark Corporation.

Although the E&P company boasts negative margins and returns, the investments can be understood by looking at its growth projections. Analysts have estimated a mean price target of $8.81 per share, which implies an upside potential of approximately 64%. They expect Miller Energy to deliver EPS growth of 15.90% this year, and 106.90% next year.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Insider Activity at Three of George Soros’ Picks

Four Warren Buffet Picks With Recent Insider Purchases

5 Small-Cap Stocks That Hedge Funds and Insiders Like

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

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

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

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!