Rayonier Inc. (NYSE:RYN) was in 11 hedge funds’ portfolio at the end of December. RYN shareholders have witnessed a decrease in hedge fund sentiment recently. There were 14 hedge funds in our database with RYN positions at the end of the previous quarter.
If you’d ask most market participants, hedge funds are seen as unimportant, old financial vehicles of the past. While there are greater than 8000 funds in operation at present, we choose to focus on the top tier of this group, about 450 funds. Most estimates calculate that this group oversees most of the hedge fund industry’s total asset base, and by keeping an eye on their highest performing stock picks, we have figured out a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum 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 the details here).
Equally as key, bullish insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are a variety of stimuli for an executive to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if piggybackers know what to do (learn more here).
Now, it’s important to take a peek at the latest action regarding Rayonier Inc. (NYSE:RYN).
Hedge fund activity in Rayonier Inc. (NYSE:RYN)
At the end of the fourth quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of -21% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the biggest position in Rayonier Inc. (NYSE:RYN). First Eagle Investment Management has a $197.6 million position in the stock, comprising 0.7% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $108.5 million position; 0.3% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Chuck Royce’s Royce & Associates, Martin D. Sass’s MD Sass and Wayne Cooperman’s Cobalt Capital Management.
Due to the fact that Rayonier Inc. (NYSE:RYN) has experienced a declination in interest from the aggregate hedge fund industry, logic holds that there exists a select few fund managers who sold off their positions entirely at the end of the year. It’s worth mentioning that Jean-Marie Eveillard’s First Eagle Investment Management said goodbye to the largest stake of the “upper crust” of funds we track, valued at an estimated $6.2 million in stock.. Charles Davidson’s fund, Wexford Capital, also said goodbye to its stock, about $3 million worth. These moves are interesting, as total hedge fund interest was cut by 3 funds at the end of the year.
How have insiders been trading Rayonier Inc. (NYSE:RYN)?
Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time frame, Rayonier Inc. (NYSE:RYN) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Rayonier Inc. (NYSE:RYN). These stocks are Jewett-Cameron Trading Co Ltd. (NASDAQ:JCTCF), Patrick Industries, Inc. (NASDAQ:PATK), Pope Resources L.P. (NASDAQ:POPE), Deltic Timber Corp (NYSE:DEL), and Weyerhaeuser Company (NYSE:WY). This group of stocks are the members of the lumber, wood production industry and their market caps are closest to RYN’s market cap.