Sauer-Danfoss Inc. (NYSE:SHS) was in 17 hedge funds’ portfolio at the end of December. SHS investors should be aware of an increase in hedge fund interest recently. There were 12 hedge funds in our database with SHS holdings at the end of the previous quarter.
In the eyes of most market participants, hedge funds are assumed to be underperforming, old financial vehicles of yesteryear. While there are more than 8000 funds with their doors open at present, we at Insider Monkey choose to focus on the top tier of this group, close to 450 funds. It is widely believed that this group controls the lion’s share of the hedge fund industry’s total capital, and by keeping an eye on their highest performing investments, we have unearthed a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year 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 25 percentage points in 6.5 month (see the details here).
Just as key, positive insider trading activity is another way to parse down the financial markets. There are plenty of reasons for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if you know where to look (learn more here).
With all of this in mind, we’re going to take a gander at the key action regarding Sauer-Danfoss Inc. (NYSE:SHS).
Hedge fund activity in Sauer-Danfoss Inc. (NYSE:SHS)
In preparation for this year, a total of 17 of the hedge funds we track were bullish in this stock, a change of 42% from the third quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings meaningfully.
When looking at the hedgies we track, Kenneth Mario Garschina’s Mason Capital Management had the biggest position in Sauer-Danfoss Inc. (NYSE:SHS), worth close to $94 million, comprising 1.4% of its total 13F portfolio. Coming in second is Sander Gerber of Hudson Bay Capital Management, with a $28 million call position; the fund has 1.5% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Carl Tiedemann and Michael Tiedemann’s TIG Advisors and Clint Carlson’s Carlson Capital.
As aggregate interest increased, specific money managers have jumped into Sauer-Danfoss Inc. (NYSE:SHS) headfirst. Mason Capital Management, managed by Kenneth Mario Garschina, initiated the most valuable position in Sauer-Danfoss Inc. (NYSE:SHS). Mason Capital Management had 94 million invested in the company at the end of the quarter. Sander Gerber’s Hudson Bay Capital Management also initiated a $28 million position during the quarter. The other funds with new positions in the stock are Carl Tiedemann and Michael Tiedemann’s TIG Advisors, and Clint Carlson’s Carlson Capital.
How are insiders trading Sauer-Danfoss Inc. (NYSE:SHS)?
Insider buying is best served when the company in question has experienced transactions within the past 180 days. Over the last half-year time frame, Sauer-Danfoss Inc. (NYSE:SHS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns shown by our studies, retail investors should always watch hedge fund and insider trading sentiment, and Sauer-Danfoss Inc. (NYSE:SHS) is an important part of this process.
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