Is Forestar Group Inc. (NYSE:FOR) a cheap investment today? Prominent investors are becoming more confident. The number of bullish hedge fund bets moved up by 3 recently.
In the 21st century investor’s toolkit, there are plenty of indicators market participants can use to monitor Mr. Market. A duo of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can outclass their index-focused peers by a very impressive margin (see just how much).
Just as key, optimistic insider trading activity is a second way to parse down the marketplace. As the old adage goes: there are lots of incentives for an executive to drop shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the valuable potential of this tactic if piggybackers know what to do (learn more here).
With these “truths” under our belt, we’re going to take a look at the latest action regarding Forestar Group Inc. (NYSE:FOR).
Hedge fund activity in Forestar Group Inc. (NYSE:FOR)
Heading into Q2, a total of 11 of the hedge funds we track held long positions in this stock, a change of 38% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings significantly.
Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the largest position in Forestar Group Inc. (NYSE:FOR). Renaissance Technologies has a $5.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Buckingham Capital Management, managed by David Keidan, which held a $4.6 million position; 0.4% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Chuck Royce’s Royce & Associates, Geoffrey Raynor’s Q Investments (Specter Holdings) and Israel Englander’s Millennium Management.
As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Millennium Management, managed by Israel Englander, established the largest position in Forestar Group Inc. (NYSE:FOR). Millennium Management had 1.2 million invested in the company at the end of the quarter. Steven Owsley’s Madison Street Partners also initiated a $1.1 million position during the quarter. The following funds were also among the new FOR investors: John Overdeck and David Siegel’s Two Sigma Advisors, Matthew Hulsizer’s PEAK6 Capital Management, and Matthew Hulsizer’s PEAK6 Capital Management.
How have insiders been trading Forestar Group Inc. (NYSE:FOR)?
Insider buying is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, Forestar Group Inc. (NYSE:FOR) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the results shown by our strategies, everyday investors must always monitor hedge fund and insider trading activity, and Forestar Group Inc. (NYSE:FOR) applies perfectly to this mantra.