BHP Billiton Limited (ADR) (NYSE:BHP) was in 14 hedge funds’ portfolio at the end of December. BHP investors should be aware of a decrease in hedge fund interest recently. There were 20 hedge funds in our database with BHP holdings at the end of the previous quarter.
To most market participants, hedge funds are viewed as slow, old financial tools of yesteryear. While there are more than 8000 funds trading at present, we choose to focus on the masters of this group, about 450 funds. It is estimated that this group controls the lion’s share of the hedge fund industry’s total asset base, and by watching their highest performing investments, we have revealed a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Equally as important, optimistic insider trading activity is another way to break down the world of equities. As the old adage goes: there are a variety of stimuli for an insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).
Now, we’re going to take a glance at the latest action encompassing BHP Billiton Limited (ADR) (NYSE:BHP).
How are hedge funds trading BHP Billiton Limited (ADR) (NYSE:BHP)?
At the end of the fourth quarter, a total of 14 of the hedge funds we track were long in this stock, a change of -30% from the third quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes significantly.
When looking at the hedgies we track, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in BHP Billiton Limited (ADR) (NYSE:BHP). Fisher Asset Management has a $529 million position in the stock, comprising 1.5% of its 13F portfolio. On Fisher Asset Management’s heels is CQS Cayman LP, managed by Michael Hintze, which held a $33 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include John Burbank’s Passport Capital, and Bart Baum’s Ionic Capital Management.
Because BHP Billiton Limited (ADR) (NYSE:BHP) has faced falling interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of funds who sold off their positions entirely last quarter. Intriguingly, Jim Simons’s Renaissance Technologies sold off the biggest position of the “upper crust” of funds we monitor, valued at about $45 million in stock.. Israel Englander’s fund, Millennium Management, also said goodbye to its call options., about $8 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 6 funds last quarter.
Insider trading activity in BHP Billiton Limited (ADR) (NYSE:BHP)
Insider buying is best served when the company in focus has experienced transactions within the past six months. Over the latest six-month time frame, BHP Billiton Limited (ADR) (NYSE:BHP) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns shown by our tactics, retail investors should always pay attention to hedge fund and insider trading activity, and BHP Billiton Limited (ADR) (NYSE:BHP) applies perfectly to this mantra.
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