Invesco Mortgage Capital Inc (NYSE:IVR) was in 14 hedge funds’ portfolio at the end of the first quarter of 2013. IVR has experienced a decrease in hedge fund interest in recent months. There were 15 hedge funds in our database with IVR holdings at the end of the previous quarter.
In today’s marketplace, there are many gauges market participants can use to track Mr. Market. A couple of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outpace the broader indices by a significant amount (see just how much).
Just as beneficial, optimistic insider trading activity is another way to break down the financial markets. Obviously, there are many reasons for an insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this method if you know where to look (learn more here).
With all of this in mind, it’s important to take a gander at the latest action regarding Invesco Mortgage Capital Inc (NYSE:IVR).
What have hedge funds been doing with Invesco Mortgage Capital Inc (NYSE:IVR)?
Heading into Q2, a total of 14 of the hedge funds we track were long in this stock, a change of -7% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Invesco Mortgage Capital Inc (NYSE:IVR). Citadel Investment Group has a $44.9 million position in the stock, comprising 0.1% of its 13F portfolio. On Citadel Investment Group’s heels is Jim Simons of Renaissance Technologies, with a $21.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Matthew Hulsizer’s PEAK6 Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors and Abby Flamholz and Yehuda Blinder’s ADAR Investment Management.
Judging by the fact that Invesco Mortgage Capital Inc (NYSE:IVR) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds who were dropping their positions entirely heading into Q2. Interestingly, Brian Jackelow’s SAB Capital Management dropped the biggest stake of the “upper crust” of funds we track, totaling about $4.9 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund cut about $0.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 1 funds heading into Q2.
What do corporate executives and insiders think about Invesco Mortgage Capital Inc (NYSE:IVR)?
Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the last six-month time period, Invesco Mortgage Capital Inc (NYSE:IVR) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Invesco Mortgage Capital Inc (NYSE:IVR). These stocks are Home Loan Servicing Solutions Ltd (NASDAQ:HLSS), Walter Investment Management Corp (NYSE:WAC), Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), KKR Financial Holdings LLC (NYSE:KFN), and Nationstar Mortgage Holdings Inc (NYSE:NSM). All of these stocks are in the mortgage investment industry and their market caps match IVR’s market cap.