Sturm, Ruger & Company (NYSE:RGR) was in 15 hedge funds’ portfolio at the end of December. RGR investors should be aware of an increase in hedge fund sentiment lately. There were 14 hedge funds in our database with RGR holdings at the end of the previous quarter.
At the moment, there are dozens of methods investors can use to track Mr. Market. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace the broader indices by a significant amount (see just how much).
Equally as key, optimistic insider trading activity is a second way to parse down the marketplace. Obviously, there are plenty of motivations for an insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the valuable potential of this method if investors know what to do (learn more here).
Keeping this in mind, let’s take a look at the key action regarding Sturm, Ruger & Company (NYSE:RGR).
How have hedgies been trading Sturm, Ruger & Company (NYSE:RGR)?
Heading into 2013, a total of 15 of the hedge funds we track held long positions in this stock, a change of 7% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Tiger Global Management LLC, managed by Chase Coleman and Feroz Dewan, holds the biggest position in Sturm, Ruger & Company (NYSE:RGR). Tiger Global Management LLC has a $36 million position in the stock, comprising 0.7% of its 13F portfolio. On Tiger Global Management LLC’s heels is Impala Asset Management, managed by Robert Bishop, which held a $25 million position; 1.3% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Jim Simons’s Renaissance Technologies, David Gallo’s Valinor Management LLC and Lee Hobson’s Highside Capital Management.
Now, key hedge funds have been driving this bullishness. Impala Asset Management, managed by Robert Bishop, established the biggest position in Sturm, Ruger & Company (NYSE:RGR). Impala Asset Management had 25 million invested in the company at the end of the quarter. Lee Hobson’s Highside Capital Management also initiated a $11 million position during the quarter. The other funds with brand new RGR positions are Joel Greenblatt’s Gotham Asset Management, D. E. Shaw’s D E Shaw, and Paul Tudor Jones’s Tudor Investment Corp.
How are insiders trading Sturm, Ruger & Company (NYSE:RGR)?
Insider buying is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest six-month time frame, Sturm, Ruger & Company (NYSE:RGR) has experienced zero unique insiders buying, and 11 insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey’s tactics, everyday investors should always monitor hedge fund and insider trading activity, and Sturm, Ruger & Company (NYSE:RGR) shareholders fit into this picture quite nicely.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.