Buckeye Technologies Inc. (NYSE:BKI) was in 7 hedge funds’ portfolio at the end of December. BKI has experienced a decrease in activity from the world’s largest hedge funds lately. There were 12 hedge funds in our database with BKI holdings at the end of the previous quarter.
If you’d ask most stock holders, hedge funds are seen as underperforming, outdated financial vehicles of yesteryear. While there are more than 8000 funds in operation today, we choose to focus on the bigwigs of this club, about 450 funds. It is estimated that this group oversees the majority of the hedge fund industry’s total capital, and by monitoring their best stock picks, we have revealed a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).
Equally as key, optimistic insider trading activity is another way to break down the stock market universe. Obviously, there are lots of motivations for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this method if “monkeys” know what to do (learn more here).
Keeping this in mind, it’s important to take a look at the recent action surrounding Buckeye Technologies Inc. (NYSE:BKI).
How have hedgies been trading Buckeye Technologies Inc. (NYSE:BKI)?
In preparation for this year, a total of 7 of the hedge funds we track held long positions in this stock, a change of -42% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings considerably.
According to our comprehensive database, Chuck Royce’s Royce & Associates had the biggest position in Buckeye Technologies Inc. (NYSE:BKI), worth close to $24.1 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Dialectic Capital Management, managed by John Fichthorn, which held a $1.8 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Ken Griffin’s Citadel Investment Group, Cliff Asness’s AQR Capital Management and Jim Simons’s Renaissance Technologies.
Seeing as Buckeye Technologies Inc. (NYSE:BKI) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there were a few fund managers that slashed their entire stakes at the end of the year. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dumped the largest position of the “upper crust” of funds we key on, valued at about $1.8 million in stock., and Robert B. Gillam of McKinley Capital Management was right behind this move, as the fund said goodbye to about $1.4 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 5 funds at the end of the year.
What have insiders been doing with Buckeye Technologies Inc. (NYSE:BKI)?
Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time frame, Buckeye Technologies Inc. (NYSE:BKI) has seen 1 unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Buckeye Technologies Inc. (NYSE:BKI). These stocks are Resolute Forest Products Inc (NYSE:RFP), P.H. Glatfelter Company (NYSE:GLT), KapStone Paper and Packaging Corp. (NYSE:KS), Schweitzer-Mauduit International, Inc. (NYSE:SWM), and Clearwater Paper Corp (NYSE:CLW). This group of stocks are the members of the paper & paper products industry and their market caps resemble BKI’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Resolute Forest Products Inc (NYSE:RFP)||21||1||0|
|P.H. Glatfelter Company (NYSE:GLT)||12||0||0|
|KapStone Paper and Packaging Corp. (NYSE:KS)||9||0||4|
|Schweitzer-Mauduit International, Inc. (NYSE:SWM)||14||0||2|
|Clearwater Paper Corp (NYSE:CLW)||10||0||0|
With the results exhibited by our research, retail investors should always pay attention to hedge fund and insider trading sentiment, and Buckeye Technologies Inc. (NYSE:BKI) shareholders fit into this picture quite nicely.