Winnebago Industries, Inc. (WGO): Are Hedge Funds Right About This Stock?: Polaris Industries Inc. (PII), Thor Industries, Inc. (THO)

Is Winnebago Industries, Inc. (NYSE:WGO) the right pick for your portfolio? The smart money is in a bearish mood. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience

Winnebago Industries, Inc. (NYSE:WGO)

To most shareholders, hedge funds are assumed to be slow, outdated financial tools of years past. While there are over 8000 funds with their doors open today, we choose to focus on the leaders of this group, close to 450 funds. It is estimated that this group has its hands on the lion’s share of the hedge fund industry’s total asset base, and by paying attention to their best stock picks, we have unearthed a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year 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 outperformed the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Equally as beneficial, positive insider trading sentiment is another way to break down the stock market universe. There are lots of stimuli for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this method if investors know what to do (learn more here).

Keeping this in mind, it’s important to take a gander at the latest action encompassing Winnebago Industries, Inc. (NYSE:WGO).

What does the smart money think about Winnebago Industries, Inc. (NYSE:WGO)?

At year’s end, a total of 12 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the most valuable position in Winnebago Industries, Inc. (NYSE:WGO), worth close to $38 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Jeffrey Vinik of Vinik Asset Management, with a $9 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Jeffrey Gendell’s Tontine Asset Management, Thomas E. Claugus’s GMT Capital and Ken Griffin’s Citadel Investment Group.

Due to the fact that Winnebago Industries, Inc. (NYSE:WGO) has experienced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedge funds who were dropping their full holdings last quarter. At the top of the heap, Ken Grossman and Glen Schneider’s SG Capital Management dumped the biggest investment of the “upper crust” of funds we key on, totaling an estimated $5 million in stock.. Joel Greenblatt’s fund, Gotham Asset Management, also sold off its stock, about $1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with Winnebago Industries, Inc. (NYSE:WGO)?

Bullish insider trading is most useful when the company in focus has experienced transactions within the past six months. Over the latest half-year time frame, Winnebago Industries, Inc. (NYSE:WGO) has experienced 2 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Winnebago Industries, Inc. (NYSE:WGO). These stocks are Polaris Industries Inc. (NYSE:PII), Thor Industries, Inc. (NYSE:THO), Drew Industries, Inc. (NYSE:DW), Federal Signal Corporation (NYSE:FSS), and Arctic Cat Inc (NASDAQ:ACAT). This group of stocks are the members of the recreational vehicles industry and their market caps are similar to WGO’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Polaris Industries Inc. (NYSE:PII) 26 0 11
Thor Industries, Inc. (NYSE:THO) 15 1 1
Drew Industries, Inc. (NYSE:DW) 10 0 9
Federal Signal Corporation (NYSE:FSS) 9 1 0
Arctic Cat Inc (NASDAQ:ACAT) 13 2 3

With the results demonstrated by our time-tested strategies, retail investors should always watch hedge fund and insider trading sentiment, and Winnebago Industries, Inc. (NYSE:WGO) applies perfectly to this mantra.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!