Clearwire Corporation (NASDAQ:CLWR) was in 32 hedge funds’ portfolio at the end of December. CLWR has experienced an increase in support from the world’s most elite money managers recently. There were 22 hedge funds in our database with CLWR holdings at the end of the previous quarter.
According to most investors, hedge funds are assumed to be worthless, outdated financial vehicles of years past. While there are over 8000 funds with their doors open at present, we at Insider Monkey hone in on the masters of this club, around 450 funds. It is widely believed that this group has its hands on the majority of the smart money’s total capital, and by tracking their best equity investments, we have revealed a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Just as beneficial, bullish insider trading sentiment is a second way to break down the financial markets. There are a number of stimuli for an insider to drop shares of his or her company, but only one, very obvious reason why they would buy. Several empirical studies have demonstrated the useful potential of this tactic if shareholders know what to do (learn more here).
With all of this in mind, it’s important to take a glance at the recent action regarding Clearwire Corporation (NASDAQ:CLWR).
What does the smart money think about Clearwire Corporation (NASDAQ:CLWR)?
Heading into 2013, a total of 32 of the hedge funds we track were long in this stock, a change of 45% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.
According to our comprehensive database, Mouth Kellett Capital Management, managed by Mark McGoldrick and Jason Maynard, holds the largest position in Clearwire Corporation (NASDAQ:CLWR). Mouth Kellett Capital Management has a $154 million position in the stock, comprising 19.6% of its 13F portfolio. The second largest stake is held by Glenview Capital, managed by Larry Robbins, which held a $87 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Lee Hobson’s Highside Capital Management, John Brennan’s Sirios Capital Management and John Paulson’s Paulson & Co.
As one would reasonably expect, key money managers have jumped into Clearwire Corporation (NASDAQ:CLWR) headfirst. Paulson & Co, managed by John Paulson, assembled the most valuable position in Clearwire Corporation (NASDAQ:CLWR). Paulson & Co had 29 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also initiated a $23 million position during the quarter. The other funds with brand new CLWR positions are Carl Tiedemann and Michael Tiedemann’s TIG Advisors, Curtis Macnguyen’s Ivory Capital (Investment Mgmt), and Robert Emil Zoellner’s Alpine Associates.
What have insiders been doing with Clearwire Corporation (NASDAQ:CLWR)?
Insider buying is at its handiest when the company in focus has seen transactions within the past six months. Over the last half-year time period, Clearwire Corporation (NASDAQ:CLWR) has experienced 1 unique insiders buying, and 8 insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Clearwire Corporation (NASDAQ:CLWR) applies perfectly to this mantra.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
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.
