Southwest Gas Corporation (NYSE:SWX) investors should be aware of an increase in hedge fund interest lately.
In the financial world, there are plenty of methods investors can use to monitor stocks. Some of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform their index-focused peers by a significant amount (see just how much).
Equally as beneficial, optimistic insider trading activity is another way to break down the marketplace. As the old adage goes: there are lots of stimuli for an insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this tactic if investors know what to do (learn more here).
Now, it’s important to take a gander at the key action regarding Southwest Gas Corporation (NYSE:SWX).
How are hedge funds trading Southwest Gas Corporation (NYSE:SWX)?
In preparation for this year, a total of 12 of the hedge funds we track held long positions in this stock, a change of 20% from the previous quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, Mario Gabelli’s GAMCO Investors had the most valuable position in Southwest Gas Corporation (NYSE:SWX), worth close to $64 million, comprising 0.5% of its total 13F portfolio. Coming in second is Phill Gross and Robert Atchinson of Adage Capital Management, with a $58 million position; 0% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include D. E. Shaw’s D E Shaw, Jim Simons’s Renaissance Technologies and Ken Griffin’s Citadel Investment Group.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, established the most valuable position in Southwest Gas Corporation (NYSE:SWX). Citadel Investment Group had 2 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $2 million position during the quarter. The only other fund with a new position in the stock is David Costen Haley’s HBK Investments.
What do corporate executives and insiders think about Southwest Gas Corporation (NYSE:SWX)?
Bullish insider trading is best served when the company in question has experienced transactions within the past half-year. Over the last 180-day time frame, Southwest Gas Corporation (NYSE:SWX) has experienced 1 unique insiders buying, and 8 insider sales (see the details of insider trades here).
With the returns demonstrated by the aforementioned time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Southwest Gas Corporation (NYSE:SWX) is no exception.
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