Hedge Funds Are Selling Meritor Inc (MTOR)

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Meritor Inc (NYSE:MTOR) was in 19 hedge funds’ portfolio at the end of the first quarter of 2013. MTOR has seen a decrease in enthusiasm from smart money of late. There were 20 hedge funds in our database with MTOR holdings at the end of the previous quarter.

At the moment, there are plenty of metrics investors can use to monitor publicly traded companies. Two 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 best picks of the best fund managers can beat the broader indices by a healthy margin (see just how much).

Meritor Inc (NYSE:MTOR)Equally as key, optimistic insider trading sentiment is a second way to parse down the stock market universe. As the old adage goes: there are a number of motivations for an insider to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this tactic if you know what to do (learn more here).

Now, let’s take a gander at the recent action encompassing Meritor Inc (NYSE:MTOR).

How are hedge funds trading Meritor Inc (NYSE:MTOR)?

In preparation for this quarter, a total of 19 of the hedge funds we track held long positions in this stock, a change of -5% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Larry Robbins’s Glenview Capital had the largest position in Meritor Inc (NYSE:MTOR), worth close to $45.6 million, accounting for 0.5% of its total 13F portfolio. Coming in second is Ken Griffin of Citadel Investment Group, with a $16 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Glenn J. Krevlin’s Glenhill Advisors, Chuck Royce’s Royce & Associates and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Seeing as Meritor Inc (NYSE:MTOR) has faced bearish sentiment from hedge fund managers, we can see that there were a few fund managers that slashed their entire stakes heading into Q2. At the top of the heap, Wayne Cooperman’s Cobalt Capital Management sold off the biggest position of the “upper crust” of funds we key on, valued at close to $2.5 million in stock., and Glenn Russell Dubin of Highbridge Capital Management was right behind this move, as the fund dumped about $1 million worth. These transactions are interesting, as total hedge fund interest fell by 1 funds heading into Q2.

What do corporate executives and insiders think about Meritor Inc (NYSE:MTOR)?

Bullish insider trading is particularly usable when the company in question has seen transactions within the past 180 days. Over the last six-month time frame, Meritor Inc (NYSE:MTOR) has seen zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Meritor Inc (NYSE:MTOR). These stocks are Federal-Mogul Corporation (NASDAQ:FDML), Remy International Inc (NASDAQ:REMY), Gentherm Inc (NASDAQ:THRM), Superior Industries International Inc. (NYSE:SUP), and Modine Manufacturing Co. (NYSE:MOD). This group of stocks are in the auto parts industry and their market caps are closest to MTOR’s market cap.

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