Do Hedge Funds and Insiders Love Lumber Liquidators Holdings Inc (NYSE:LL)?

Lumber Liquidators Holdings Inc (NYSE:LL) was in 22 hedge funds’ portfolio at the end of December. LL investors should pay attention to an increase in enthusiasm from smart money lately. There were 17 hedge funds in our database with LL positions at the end of the previous quarter.

In the financial world, there are a multitude of methods shareholders can use to watch stocks. Some of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can trounce the S&P 500 by a superb margin (see just how much).

Lumber Liquidators Holdings Inc (NYSE:LL)

Equally as important, positive insider trading sentiment is a second way to break down the investments you’re interested in. Obviously, there are many reasons for an executive to cut shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the impressive potential of this tactic if you understand where to look (learn more here).

Consequently, let’s take a look at the key action encompassing Lumber Liquidators Holdings Inc (NYSE:LL).

What does the smart money think about Lumber Liquidators Holdings Inc (NYSE:LL)?

At year’s end, a total of 22 of the hedge funds we track held long positions in this stock, a change of 29% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.

Of the funds we track, Mariko Gordon’s Daruma Asset Management had the most valuable position in Lumber Liquidators Holdings Inc (NYSE:LL), worth close to $59 million, accounting for 3.5% of its total 13F portfolio. Sitting at the No. 2 spot is Donald Chiboucis of Columbus Circle Investors, with a $38 million position; 0.2% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Steven Cohen’s SAC Capital Advisors, Alexander Mitchell’s Scopus Asset Management and Phill Gross and Robert Atchinson’s Adage Capital Management.

As aggregate interest increased, key hedge funds were breaking ground themselves. SAC Capital Advisors, managed by Steven Cohen, established the most valuable position in Lumber Liquidators Holdings Inc (NYSE:LL). SAC Capital Advisors had 31 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also initiated a $11 million position during the quarter. The other funds with new positions in the stock are Bart Baum’s Ionic Capital Management, Glenn Russell Dubin’s Highbridge Capital Management, and Mike Vranos’s Ellington.

How have insiders been trading Lumber Liquidators Holdings Inc (NYSE:LL)?

Insider purchases made by high-level executives is at its handiest when the company in focus has seen transactions within the past six months. Over the last 180-day time period, Lumber Liquidators Holdings Inc (NYSE:LL) has experienced 1 unique insiders buying, and 7 insider sales (see the details of insider trades here).

With the returns demonstrated by our time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading activity, and Lumber Liquidators Holdings Inc (NYSE:LL) is an important part of this process.

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