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This Metric Says You Are Smart to Buy Altra Holdings, Inc. (NASDAQ:AIMC)

Is Altra Holdings, Inc. (NASDAQ:AIMC) a good investment?

If you were to ask many traders, hedge funds are perceived as useless, old financial vehicles of a period lost to current times. Although there are over 8,000 hedge funds in operation currently, Insider Monkey aim at the crème de la crème of this group, around 525 funds. Analysts calculate that this group oversees the majority of the hedge fund industry’s total capital, and by watching their highest quality equity investments, we’ve uncovered a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat 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 (explore the details and some picks here).

Equally as useful, positive insider trading activity is another way to analyze the stock market universe. There are plenty of incentives for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this tactic if shareholders know where to look (learn more here).

Thus, we’re going to discuss the latest info surrounding Altra Holdings, Inc. (NASDAQ:AIMC).

How have hedgies been trading Altra Holdings, Inc. (NASDAQ:AIMC)?

Heading into Q3, a total of 12 of the hedge funds we track held long positions in this stock, a change of 50% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly.

Altra Holdings, Inc. (NASDAQ:AIMC)Out of the hedge funds we follow, Sagard Capital Partners Management Corp, managed by Dan Friedberg, holds the largest position in Altra Holdings, Inc. (NASDAQ:AIMC). Sagard Capital Partners Management Corp has a $26.7 million position in the stock, comprising 9.4% of its 13F portfolio. Coming in second is AQR Capital Management, managed by Cliff Asness, which held a $4.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Jim Simons’s Renaissance Technologies, Joel Greenblatt’s Gotham Asset Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Consequently, specific money managers were leading the bulls’ herd. Sagard Capital Partners Management Corp, managed by Dan Friedberg, initiated the most valuable position in Altra Holdings, Inc. (NASDAQ:AIMC). Sagard Capital Partners Management Corp had 26.7 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $10.8 million position during the quarter. The following funds were also among the new AIMC investors: Cliff Asness’s AQR Capital Management, Jim Simons’s Renaissance Technologies, and Joel Greenblatt’s Gotham Asset Management.

Insider trading activity in Altra Holdings, Inc. (NASDAQ:AIMC)

Insider buying made by high-level executives is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Altra Holdings, Inc. (NASDAQ:AIMC) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Altra Holdings, Inc. (NASDAQ:AIMC). These stocks are OSI Systems, Inc. (NASDAQ:OSIS), Daktronics, Inc. (NASDAQ:DAKT), GrafTech International Ltd (NYSE:GTI), Powell Industries, Inc. (NASDAQ:POWL), and Hollysys Automation Technologies Ltd (NASDAQ:HOLI). All of these stocks are in the industrial electrical equipment industry and their market caps are similar to AIMC’s market cap.

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