Hubbell Incorporated (NYSE:HUB.B) was in 20 hedge funds’ portfolio at the end of the fourth quarter of 2012. HUB.B investors should be aware of a decrease in hedge fund sentiment lately. There were 22 hedge funds in our database with HUB.B positions at the end of the previous quarter.
In the financial world, there are tons of indicators investors can use to analyze stocks. A pair of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can outperform the broader indices by a significant amount (see just how much).
Equally as key, bullish insider trading sentiment is a second way to break down the world of equities. Obviously, there are a variety of motivations for an insider to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).
With all of this in mind, let’s take a look at the latest action encompassing Hubbell Incorporated (NYSE:HUB.B).
What does the smart money think about Hubbell Incorporated (NYSE:HUB.B)?
At the end of the fourth quarter, a total of 20 of the hedge funds we track held long positions in this stock, a change of -9% from the previous quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in Hubbell Incorporated (NYSE:HUB.B), worth close to $136.3 million, comprising 0.4% of its total 13F portfolio. On Royce & Associates’s heels is Mason Capital Management, managed by Kenneth Mario Garschina, which held a $96.1 million position; the fund has 1.4% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Phill Gross and Robert Atchinson’s Adage Capital Management, Anand Parekh’s Alyeska Investment Group and Steven Cohen’s SAC Capital Advisors.
Due to the fact that Hubbell Incorporated (NYSE:HUB.B) has faced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of funds who were dropping their entire stakes at the end of the year. It’s worth mentioning that David Dreman’s Dreman Value Management cut the biggest stake of all the hedgies we monitor, totaling close to $3.7 million in stock.. Joel Greenblatt’s fund, Gotham Asset Management, also dumped its stock, about $1.2 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 2 funds at the end of the year.
What do corporate executives and insiders think about Hubbell Incorporated (NYSE:HUB.B)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the latest half-year time period, Hubbell Incorporated (NYSE:HUB.B) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Hubbell Incorporated (NYSE:HUB.B). These stocks are Pall Corporation (NYSE:PLL), Colfax Corp (NYSE:CFX), IDEX Corporation (NYSE:IEX), Dresser-Rand Group Inc. (NYSE:DRC), and Xylem Inc (NYSE:XYL). This group of stocks belong to the diversified machinery industry and their market caps match HUB.B’s market cap.