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Is Mohawk Industries, Inc. (MHK) Going to Burn These Hedge Funds?

Mohawk Industries, Inc. (NYSE:MHK) has seen an increase in support from the world’s most elite money managers in recent months.

At the moment, there are many gauges market participants can use to watch their holdings. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass their index-focused peers by a very impressive amount (see just how much).

Equally as beneficial, positive insider trading activity is another way to parse down the world of equities. Just as you’d expect, there are plenty of reasons for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).

With these “truths” under our belt, it’s important to take a gander at the key action regarding Mohawk Industries, Inc. (NYSE:MHK).

What does the smart money think about Mohawk Industries, Inc. (NYSE:MHK)?

In preparation for this quarter, a total of 45 of the hedge funds we track were bullish in this stock, a change of 29% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably.

According to our comprehensive database, Robert Joseph Caruso’s Select Equity Group had the most valuable position in Mohawk Industries, Inc. (NYSE:MHK), worth close to $180 million, comprising 2.4% of its total 13F portfolio. On Select Equity Group’s heels is Ken Griffin of Citadel Investment Group, with a $128.5 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Patrick Degorce’s Theleme Partners, Ken Heebner’s Capital Growth Management and John W. Rogers’s Ariel Investments.

As industrywide interest jumped, key hedge funds have jumped into Mohawk Industries, Inc. (NYSE:MHK) headfirst. Newbrook Capital Advisors, managed by Robert Boucai, established the largest position in Mohawk Industries, Inc. (NYSE:MHK). Newbrook Capital Advisors had 41.2 million invested in the company at the end of the quarter. Malcolm Fairbairn’s Ascend Capital also initiated a $31.7 million position during the quarter. The other funds with new positions in the stock are Sean Cullinan’s Point State Capital, Michael Novogratz’s Fortress Investment Group, and John Overdeck and David Siegel’s Two Sigma Advisors.

Insider trading activity in Mohawk Industries, Inc. (NYSE:MHK)

Bullish insider trading is best served when the company in question has seen transactions within the past half-year. Over the latest six-month time period, Mohawk Industries, Inc. (NYSE:MHK) has experienced zero unique insiders buying, and 11 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Mohawk Industries, Inc. (NYSE:MHK). These stocks are Culp, Inc. (NYSE:CFI), Unifi, Inc. (NYSE:UFI), Albany International Corp. (NYSE:AIN), and Interface, Inc. (NASDAQ:TILE). This group of stocks are the members of the 0 industry and their market caps match MHK’s market cap.