Is Ball Corporation (NYSE:BLL) a good investment now? Hedge funds are taking a bearish view. The number of long hedge fund positions dropped by 3 lately.
In the 21st century investor’s toolkit, there are plenty of gauges market participants can use to watch the equity markets. Some of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can outpace the market by a superb amount (see just how much).
Just as important, optimistic insider trading sentiment is another way to parse down the world of equities. Obviously, there are plenty of reasons for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).
Consequently, it’s important to take a gander at the latest action surrounding Ball Corporation (NYSE:BLL).
What does the smart money think about Ball Corporation (NYSE:BLL)?
Heading into 2013, a total of 15 of the hedge funds we track were bullish in this stock, a change of -17% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, David Cohen and Harold Levy’s Iridian Asset Management had the most valuable position in Ball Corporation (NYSE:BLL), worth close to $177 million, comprising 2.9% of its total 13F portfolio. The second largest stake is held by First Eagle Investment Management, managed by Jean-Marie Eveillard, which held a $63 million position; 0.2% of its 13F portfolio is allocated to the company. Other peers with similar optimism include David Harding’s Winton Capital Management, Phill Gross and Robert Atchinson’s Adage Capital Management and Cliff Asness’s AQR Capital Management.
Since Ball Corporation (NYSE:BLL) has faced a declination in interest from the entirety of the hedge funds we track, we can see that there is a sect of fund managers who sold off their entire stakes in Q4. At the top of the heap, Mike Vranos’s Ellington said goodbye to the biggest stake of all the hedgies we track, and Ben Levine, Andrew Manuel and Stefan Renold of LMR Partners were right behind this move. These moves are important to note, as aggregate hedge fund interest fell by 3 funds in Q4.
What do corporate executives and insiders think about Ball Corporation (NYSE:BLL)?
Bullish insider trading is most useful when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, Ball Corporation (NYSE:BLL) has seen zero unique insiders buying, and 10 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Ball Corporation (NYSE:BLL). Some of these stocks are Tupperware Brands Corporation (NYSE:TUP), Sealed Air Corp (NYSE:SEE), and Crown Holdings, Inc. (NYSE:CCK).
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Tupperware Brands Corporation (NYSE:TUP) | 19 | 0 | 18 |
| Sealed Air Corp (NYSE:SEE) | 25 | 1 | 1 |
| Crown Holdings, Inc. (NYSE:CCK) | 26 | 0 | 4 |
| MeadWestvaco Corp. (NYSE:MWV) | 18 | 0 | 1 |
| Rock-Tenn Company (NYSE:RKT) | 24 | 1 | 7 |
With the returns exhibited by the aforementioned research, retail investors should always pay attention to hedge fund and insider trading activity, and Ball Corporation (NYSE:BLL) is an important part of this process.
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