Met-Pro Corporation (NYSE:MPR) was in 6 hedge funds’ portfolio at the end of the fourth quarter of 2012. MPR has experienced a decrease in hedge fund sentiment lately. There were 6 hedge funds in our database with MPR holdings at the end of the previous quarter; in our experience, this is a bearish signal to have stagnant interest.
According to most traders, hedge funds are perceived as underperforming, outdated investment tools of the past. While there are over 8000 funds with their doors open at present, we hone in on the top tier of this club, about 450 funds. It is estimated that this group oversees most of the hedge fund industry’s total capital, and by keeping an eye on their top investments, we have unsheathed a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outpaced 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 outclassed the S&P 500 index by 24 percentage points in 7 months (see the details here).
Just as beneficial, bullish insider trading activity is a second way to parse down the investments you’re interested in. As the old adage goes: there are a number of stimuli for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this strategy if “monkeys” understand what to do (learn more here).
Consequently, let’s take a look at the latest action surrounding Met-Pro Corporation (NYSE:MPR).
How have hedgies been trading Met-Pro Corporation (NYSE:MPR)?
At year’s end, a total of 6 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Met-Pro Corporation (NYSE:MPR). Renaissance Technologies has a $1.9 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies’s heels is GAMCO Investors, managed by Mario Gabelli, which held a $1.2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include John Overdeck and David Siegel’s Two Sigma Advisors, Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.
How are insiders trading Met-Pro Corporation (NYSE:MPR)?
Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time frame, Met-Pro Corporation (NYSE:MPR) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Met-Pro Corporation (NYSE:MPR). These stocks are Flow International Corporation (NASDAQ:FLOW), PMFG Inc (NASDAQ:PMFG), China Ming Yang Wind Power Group Ltd (NYSE:MY), and Tecumseh Products Company (NASDAQ:TECUA). This group of stocks belong to the diversified machinery industry and their market caps match MPR’s market cap.