What’s a smart Hatteras Financial Corp. (NYSE:HTS) investor to do?
In the financial world, there are a multitude of methods shareholders can use to watch the equity markets. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can outperform their index-focused peers by a significant margin (see just how much).
Equally as necessary, positive insider trading activity is another way to look at the marketplace. Just as you’d expect, there are plenty of incentives for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this method if shareholders know what to do (learn more here).
Furthermore, we’re going to analyze the newest info surrounding Hatteras Financial Corp. (NYSE:HTS).
How are hedge funds trading Hatteras Financial Corp. (NYSE:HTS)?
At the end of the second quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of 17% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.
According to our 13F database, Charles Clough’s Clough Capital Partners had the largest position in Hatteras Financial Corp. (NYSE:HTS), worth close to $19.4 million, comprising 0.6% of its total 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $11.9 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Bill Miller’s Legg Mason Capital Management, and Cliff Asness’s AQR Capital Management.
As one would understandably expect, certain money managers have jumped into Hatteras Financial Corp. (NYSE:HTS) headfirst. Clough Capital Partners, managed by Charles Clough, established the most outsized position in Hatteras Financial Corp. (NYSE:HTS). Clough Capital Partners had 19.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $11.9 million position during the quarter. The other funds with new positions in the stock are Bill Miller’s Legg Mason Capital Management, Matthew Hulsizer’s PEAK6 Capital Management, and Cliff Asness’s AQR Capital Management.
How are insiders trading Hatteras Financial Corp. (NYSE:HTS)?
Bullish insider trading is best served when the company in focus has experienced transactions within the past half-year. Over the latest six-month time period, Hatteras Financial Corp. (NYSE:HTS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Hatteras Financial Corp. (NYSE:HTS). These stocks are Home Properties, Inc. (NYSE:HME), Equity Lifestyle Properties, Inc. (NYSE:ELS), ARMOUR Residential REIT, Inc. (NYSE:ARR), Mid America Apartment Communities Inc (NYSE:MAA), and Post Properties Inc (NYSE:PPS). This group of stocks belong to the reit – residential industry and their market caps are closest to HTS’s market cap.