International Business Machines Corp. (NYSE:IBM) has seen a decrease in support from the world’s most elite money managers in recent months.
In the 21st century investor’s toolkit, there are a multitude of metrics investors can use to analyze publicly traded companies. A couple of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can beat their index-focused peers by a solid amount (see just how much).
Just as important, positive insider trading sentiment is another way to break down the financial markets. As the old adage goes: there are a number of reasons for a bullish insider to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).
With all of this in mind, it’s important to take a look at the recent action surrounding International Business Machines Corp. (NYSE:IBM).
How are hedge funds trading International Business Machines Corp. (NYSE:IBM)?
In preparation for this year, a total of 47 of the hedge funds we track held long positions in this stock, a change of -2% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies we track, Warren Buffett’s Berkshire Hathaway had the most valuable position in International Business Machines Corp. (NYSE:IBM), worth close to $13.048 billion, accounting for 17.3% of its total 13F portfolio. Sitting at the No. 2 spot is Fisher Asset Management, managed by Ken Fisher, which held a $625 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include D. E. Shaw’s D E Shaw, Phill Gross and Robert Atchinson’s Adage Capital Management and Ric Dillon’s Diamond Hill Capital.
Due to the fact that International Business Machines Corp. (NYSE:IBM) has experienced a declination in interest from the smart money, it’s easy to see that there were a few hedge funds that decided to sell off their full holdings last quarter. Intriguingly, Louis Navellier’s Navellier & Associates said goodbye to the largest investment of the “upper crust” of funds we key on, totaling close to $76 million in stock., and Joe DiMenna of ZWEIG DIMENNA PARTNERS was right behind this move, as the fund dumped about $40 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds last quarter.
What do corporate executives and insiders think about International Business Machines Corp. (NYSE:IBM)?
Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time frame, International Business Machines Corp. (NYSE:IBM) has seen zero unique insiders buying, and 17 insider sales (see the details of insider trades here).
With the results demonstrated by our studies, retail investors must always keep an eye on hedge fund and insider trading activity, and International Business Machines Corp. (NYSE:IBM) shareholders fit into this picture quite nicely.
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