Mohawk Industries, Inc. (NYSE:MHK) has seen an increase in enthusiasm from smart money lately.
In today’s marketplace, there are dozens of methods investors can use to track stocks. Some of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can beat the broader indices by a healthy margin (see just how much).
Just as key, optimistic insider trading sentiment is another way to parse down the financial markets. Obviously, there are many incentives for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this method if “monkeys” know where to look (learn more here).
Now, we’re going to take a peek at the latest action regarding Mohawk Industries, Inc. (NYSE:MHK).
How have hedgies been trading Mohawk Industries, Inc. (NYSE:MHK)?
At year’s end, a total of 33 of the hedge funds we track were long in this stock, a change of 27% from one quarter earlier. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Mohawk Industries, Inc. (NYSE:MHK). Citadel Investment Group has a $224 million billion position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Patrick Degorce of Theleme Partners, with a $72 million position; 5.5% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include John W. Rogers’s Ariel Investments, Chuck Royce’s Royce & Associates and Ken Heebner’s Capital Growth Management.
Now, specific money managers have been driving this bullishness. Theleme Partners, managed by Patrick Degorce, created the most outsized position in Mohawk Industries, Inc. (NYSE:MHK). Theleme Partners had 72 million invested in the company at the end of the quarter. Ken Heebner’s Capital Growth Management also made a $47 million investment in the stock during the quarter. The following funds were also among the new MHK investors: John Lykouretzos’s Hoplite Capital Management, Donald Chiboucis’s Columbus Circle Investors, and Robert Joseph Caruso’s Select Equity Group.
How are insiders trading Mohawk Industries, Inc. (NYSE:MHK)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has seen transactions within the past 180 days. Over the last half-year time frame, Mohawk Industries, Inc. (NYSE:MHK) has experienced zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).
With the results shown by our studies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Mohawk Industries, Inc. (NYSE:MHK) shareholders fit into this picture quite nicely.
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