Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is United Fire Group, Inc. (UFCS) Going to Burn These Hedge Funds?

Is United Fire Group, Inc. (NASDAQ:UFCS) a buy right now? Money managers are betting on the stock. The number of bullish hedge fund positions increased by 4 in recent months.

In the 21st century investor’s toolkit, there are many metrics investors can use to analyze their holdings. Two of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can outperform the broader indices by a very impressive margin (see just how much).

Just as key, bullish insider trading activity is a second way to break down the marketplace. There are a number of reasons for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the key action encompassing United Fire Group, Inc. (NASDAQ:UFCS).

Hedge fund activity in United Fire Group, Inc. (NASDAQ:UFCS)

At the end of the fourth quarter, a total of 11 of the hedge funds we track were long in this stock, a change of 57% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Israel Englander’s Millennium Management had the most valuable position in United Fire Group, Inc. (NASDAQ:UFCS), worth close to $6.5 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Chuck Royce of Royce & Associates, with a $4.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Ric Dillon’s Diamond Hill Capital, Eric D. Hovde’s Hovde Capital and Ken Griffin’s Citadel Investment Group.

Consequently, key hedge funds have jumped into United Fire Group, Inc. (NASDAQ:UFCS) headfirst. Hovde Capital, managed by Eric D. Hovde, assembled the largest position in United Fire Group, Inc. (NASDAQ:UFCS). Hovde Capital had 2.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.9 million position during the quarter. The other funds with new positions in the stock are SAC Subsidiary’s CR Intrinsic Investors, Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s GRT Capital Partners, and Steven Cohen’s SAC Capital Advisors.

Insider trading activity in United Fire Group, Inc. (NASDAQ:UFCS)

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time frame, United Fire Group, Inc. (NASDAQ:UFCS) has experienced 5 unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to United Fire Group, Inc. (NASDAQ:UFCS). These stocks are Global Indemnity plc (NASDAQ:GBLI), State Auto Financial (NASDAQ:STFC), National Interstate Corporation (NASDAQ:NATL), Infinity Property and Casualty Corp. (NASDAQ:IPCC), and Amerisafe, Inc. (NASDAQ:AMSF). This group of stocks belong to the property & casualty insurance industry and their market caps resemble UFCS’s market cap.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.