Rockwood Holdings, Inc. (NYSE:ROC) has seen an increase in enthusiasm from smart money lately.
In the 21st century investor’s toolkit, there are tons of metrics shareholders can use to analyze their holdings. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can trounce the market by a significant margin (see just how much).
Just as beneficial, positive insider trading sentiment is a second way to break down the world of equities. As the old adage goes: there are lots of stimuli for an executive to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this strategy if piggybackers know what to do (learn more here).
Consequently, let’s take a glance at the recent action encompassing Rockwood Holdings, Inc. (NYSE:ROC).
What does the smart money think about Rockwood Holdings, Inc. (NYSE:ROC)?
In preparation for this year, a total of 31 of the hedge funds we track were bullish in this stock, a change of 29% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Atlantic Investment Management, managed by Alexander Roepers, holds the biggest position in Rockwood Holdings, Inc. (NYSE:ROC). Atlantic Investment Management has a $241 million billion position in the stock, comprising 19.7% of its 13F portfolio. On Atlantic Investment Management’s heels is Iridian Asset Management, managed by David Cohen and Harold Levy, which held a $181 million position; the fund has 3% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Barry Rosenstein’s JANA Partners, Eric Bannasch’s Cadian Capital and Dinakar Singh’s TPG-AXON Management LP.
Now, some big names have jumped into Rockwood Holdings, Inc. (NYSE:ROC) headfirst. Corvex Capital, managed by Keith Meister, created the biggest position in Rockwood Holdings, Inc. (NYSE:ROC). Corvex Capital had 27 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $6 million investment in the stock during the quarter. The other funds with new positions in the stock are Anand Parekh’s Alyeska Investment Group, SAC Subsidiary’s CR Intrinsic Investors, and Philip Hempleman’s Ardsley Partners.
How are insiders trading Rockwood Holdings, Inc. (NYSE:ROC)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past six months. Over the latest six-month time period, Rockwood Holdings, Inc. (NYSE:ROC) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
With the results exhibited by our strategies, everyday investors should always monitor hedge fund and insider trading activity, and Rockwood Holdings, Inc. (NYSE:ROC) is an important part of this process.
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