The SEC requires hedge funds and wealthy investors with over a certain portfolio size to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings discloses the funds’ positions on September 30. We at Insider Monkey have compiled an extensive database of more than 700 of those elite funds and prominent investors’ filings. In this article, we analyze how these elite funds and prominent investors traded VimpelCom Ltd (ADR) (NASDAQ:VIP) based on those filings.
VimpelCom Ltd (ADR) (NASDAQ:VIP) shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. At the end of this article we will also compare VIP to other stocks including Turquoise Hill Resources Ltd (NYSE:TRQ), EQT GP Holdings LP (NYSE:EQGP), and Carlisle Companies, Inc. (NYSE:CSL) to get a better sense of its popularity.
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Now, we’re going to take a look at the new action regarding VimpelCom Ltd (ADR) (NASDAQ:VIP).
How have hedgies been trading VimpelCom Ltd (ADR) (NASDAQ:VIP)?
At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a massive jump of 120% from the second quarter of 2016. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Abrams Capital Management, run by David Abrams, holds the biggest position in VimpelCom Ltd (ADR) (NASDAQ:VIP). According to regulatory filings, the fund has a $65.3 million position in the stock, comprising 3.2% of its 13F portfolio. On Abrams Capital Management’s heels is Laurion Capital Management, led by Benjamin A. Smith, holding a $41.6 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish consist of John W. Moon’s Moon Capital, Thomas Steyer’s Farallon Capital and Howard Marks’s Oaktree Capital Management.
As industrywide interest jumped, key hedge funds were breaking ground themselves. Benjamin A. Smith’s Laurion Capital Management initiated the most outsized position in VimpelCom Ltd (ADR) (NASDAQ:VIP), followed by John Brennan’s Sirios Capital Management, which initiated a $15.4 million position during the quarter. The other funds with brand new VIP positions are Daniel S. Och’s OZ Management, Guy Shahar’s DSAM Partners, and Simon Sadler’s Segantii Capital.
Let’s now take a look at hedge fund activity in other stocks similar to VimpelCom Ltd (ADR) (NASDAQ:VIP). These stocks are Turquoise Hill Resources Ltd (NYSE:TRQ), EQT GP Holdings LP (NYSE:EQGP), Carlisle Companies, Inc. (NYSE:CSL), and Equity Lifestyle Properties, Inc. (NYSE:ELS). This group of stocks’ market valuations match VIP’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TRQ | 18 | 469171 | -2 |
| EQGP | 3 | 24730 | -1 |
| CSL | 24 | 362307 | 2 |
| ELS | 11 | 271254 | -3 |
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $282 million. That figure was $253 million in VIP’s case. Carlisle Companies, Inc. (NYSE:CSL) is the most popular stock in this table. On the other hand EQT GP Holdings LP (NYSE:EQGP) is the least popular one with only 3 bullish hedge fund positions. VimpelCom Ltd (ADR) (NASDAQ:VIP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CSL might be a better candidate to consider a long position.
Disclosure: none.
