Intel Corporation (INTC)’s Wealthiest Investors Are Doing This

Intel Corporation (NASDAQ:INTC) has experienced an increase in hedge fund interest in recent months.

According to most market participants, hedge funds are viewed as slow, outdated financial vehicles of the past. While there are over 8000 funds trading at present, we hone in on the masters of this group, close to 450 funds. It is widely believed that this group oversees the majority of the smart money’s total asset base, and by tracking their top equity investments, we have found a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually 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 beaten the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as important, positive insider trading activity is another way to break down the stock market universe. Just as you’d expect, there are lots of stimuli for an executive to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this tactic if investors understand what to do (learn more here).

With these “truths” under our belt, let’s take a peek at the key action surrounding Intel Corporation (NASDAQ:INTC).

Hedge fund activity in Intel Corporation (NASDAQ:INTC)

In preparation for this quarter, a total of 54 of the hedge funds we track held long positions in this stock, a change of 8% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the biggest position in Intel Corporation (NASDAQ:INTC). First Eagle Investment Management has a $729.7 million position in the stock, comprising 2.4% of its 13F portfolio. Coming in second is Paul Ruddock and Steve Heinz of Lansdowne Partners, with a $451.4 million call position; the fund has 6.2% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Ken Fisher’s Fisher Asset Management, Jim Simons’s Renaissance Technologies and Phill Gross and Robert Atchinson’s Adage Capital Management.

As aggregate interest increased, key money managers were breaking ground themselves. Lansdowne Partners, managed by Paul Ruddock and Steve Heinz, initiated the largest call position in Intel Corporation (NASDAQ:INTC). Lansdowne Partners had 451.4 million invested in the company at the end of the quarter. Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC also initiated a $117.5 million position during the quarter. The other funds with new positions in the stock are Peter Adam Hochfelder’s Brahman Capital, Philippe Jabre’s Jabre Capital Partners, and Tony Chedraoui’s Tyrus Capital.

Insider trading activity in Intel Corporation (NASDAQ:INTC)

Insider buying is most useful when the company in question has seen transactions within the past six months. Over the last half-year time period, Intel Corporation (NASDAQ:INTC) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

With the results exhibited by our studies, everyday investors must always monitor hedge fund and insider trading sentiment, and Intel Corporation (NASDAQ:INTC) is no exception.

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