Do Hedge Funds and Insiders Love Drew Industries, Inc. (DW)?
Should Drew Industries, Inc. (NYSE:DW) investors track the following data?
If you were to ask many of your peers, hedge funds are seen as delayed, outdated financial vehicles of a period lost to current times. Although there are over 8,000 hedge funds trading in present day, Insider Monkey focuses on the masters of this group, close to 525 funds. Analysts calculate that this group has its hands on most of all hedge funds' total assets, and by paying attention to their highest quality picks, we've uncovered a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find the details here).
Just as key, optimistic insider trading activity is a second way to analyze the financial markets. Obviously, there are plenty of reasons for a bullish insider to drop shares of his or her company, but just one, very simple reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this method if investors know where to look (learn more here).
What's more, it's important to study the latest info about Drew Industries, Inc. (NYSE:DW).
How have hedgies been trading Drew Industries, Inc. (NYSE:DW)?
At Q2's end, a total of 8 of the hedge funds we track held long positions in this stock, a change of -50% from the first quarter. With hedgies' capital changing hands, there exists a few key hedge fund managers who were upping their holdings significantly.
When using filings from the hedgies we track, Chuck Royce's Royce & Associates had the biggest position in Drew Industries, Inc. (NYSE:DW), worth close to $63.2 million, comprising 0.2% of its total 13F portfolio. On Royce & Associates's heels is Manatuck Hill Partners, managed by Mark Broach, which held a $5.5 million position; 0.7% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Jim Simons's Renaissance Technologies, Peter Algert and Kevin Coldiron's Algert Coldiron Investors and D. E. Shaw's D E Shaw.
As Drew Industries, Inc. (NYSE:DW) has experienced a fall in interest from the top-tier hedge fund industry, it's safe to say that there were a few fund managers that slashed their positions entirely heading into Q2. It's worth mentioning that Richard Driehaus's Driehaus Capital cut the largest investment of the 450+ funds we track, comprising about $2.1 million in stock. John Overdeck and David Siegel's fund, Two Sigma Advisors, also dumped its stock, about $0.7 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 8 funds heading into Q2.
What do corporate executives and insiders think about Drew Industries, Inc. (NYSE:DW)?
Bullish insider trading is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time frame, Drew Industries, Inc. (NYSE:DW) has seen zero unique insiders purchasing, 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 Drew Industries, Inc. (NYSE:DW). These stocks are Polaris Industries Inc. (NYSE:PII), Thor Industries, Inc. (NYSE:THO), Federal Signal Corporation (NYSE:FSS), Arctic Cat Inc (NASDAQ:ACAT), and Winnebago Industries, Inc. (NYSE:WGO). This group of stocks are in the recreational vehicles industry and their market caps resemble DW's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Polaris Industries Inc. (NYSE:PII)
Thor Industries, Inc. (NYSE:THO)
Federal Signal Corporation (NYSE:FSS)
Arctic Cat Inc (NASDAQ:ACAT)
Winnebago Industries, Inc. (NYSE:WGO)
Using the results explained by the previously mentioned analyses, average investors should always track hedge fund and insider trading activity, and Drew Industries, Inc. (NYSE:DW) is an important part of this process.