Should you consider buying Nationstar Mortgage Holdings Inc (NYSE:NSM)?
To many of your peers, hedge funds are assumed to be delayed, outdated investment vehicles of a period lost to current times. Although there are In excess of 8,000 hedge funds trading in present day, Insider Monkey looks at the moguls of this club, close to 525 funds. It is widely held that this group oversees most of the hedge fund industry’s total assets, and by monitoring their best stock picks, we’ve brought to light a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Just as key, positive insider trading activity is another way to look at the marketplace. There are plenty of motivations for an executive to cut shares of his or her company, but just one, very clear reason why they would buy. Several academic studies have demonstrated the useful potential of this method if piggybackers know what to do (learn more here).
Thus, it’s important to analyze the newest info about Nationstar Mortgage Holdings Inc (NYSE:NSM).
Hedge fund activity in Nationstar Mortgage Holdings Inc (NYSE:NSM)
Heading into Q3, a total of 23 of the hedge funds we track held long positions in this stock, a change of 10% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings significantly.
When using filings from the hedgies we track, Fortress Investment Group, managed by Michael Novogratz, holds the largest position in Nationstar Mortgage Holdings Inc (NYSE:NSM). Fortress Investment Group has a $2.54 billion position in the stock, comprising 63.2% of its 13F portfolio. The second largest stake is held by Select Equity Group, managed by Robert Joseph Caruso, which held a $90.1 million position; 1.3% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include John Osterweis’s Osterweis Capital Management, and Israel Englander’s Millennium Management.
With a general bullishness amongst the titans, particular hedge funds have jumped into Nationstar Mortgage Holdings Inc (NYSE:NSM) headfirst. Fortress Investment Group, managed by Michael Novogratz, assembled the most outsized position in Nationstar Mortgage Holdings Inc (NYSE:NSM). Fortress Investment Group had 2.54 billion invested in the company at the end of the quarter. Robert Joseph Caruso’s Select Equity Group also made a $90.1 million investment in the stock during the quarter. The other funds with new positions in the stock are John Osterweis’s Osterweis Capital Management, Bruce J. Richards and Louis Hanover’s Marathon Asset Management, and Israel Englander’s Millennium Management.
Insider trading activity in Nationstar Mortgage Holdings Inc (NYSE:NSM)
Insider buying made by high-level executives is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time period, Nationstar Mortgage Holdings Inc (NYSE:NSM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Nationstar Mortgage Holdings Inc (NYSE:NSM). These stocks are Home Loan Servicing Solutions Ltd (NASDAQ:HLSS), Walter Investment Management Corp (NYSE:WAC), Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), KKR Financial Holdings LLC (NYSE:KFN), and Invesco Mortgage Capital Inc (NYSE:IVR). This group of stocks are the members of the mortgage investment industry and their market caps match NSM’s market cap.