The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Anadarko Petroleum Corporation (NYSE:APC).
Anadarko Petroleum Corporation (NYSE:APC) has experienced a decrease in support from the world’s most elite money managers of late. APC was in 70 hedge funds’ portfolios at the end of the third quarter of 2015. There were 75 hedge funds in our database with APC positions at the end of the previous quarter. At the end of this article we will also compare APC to other stocks, including China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), Estee Lauder Companies Inc (NYSE:EL), and Manulife Financial Corporation (USA) (NYSE:MFC) to get a better sense of its popularity.
Follow Anadarko Petroleum Corp (NYSE:APC)
Follow Anadarko Petroleum Corp (NYSE:APC)
If you’d ask most market participants, hedge funds are perceived as slow, outdated financial vehicles of the past. While there are over 8000 funds in operation at the moment, We hone in on the aristocrats of this group, approximately 700 funds. These hedge fund managers handle bulk of the hedge fund industry’s total capital, and by watching their inimitable equity investments, Insider Monkey has unsheathed numerous investment strategies that have historically surpassed Mr. Market. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points per year for a decade in their back tests.
With all of this in mind, let’s review the new action regarding Anadarko Petroleum Corporation (NYSE:APC).
How are hedge funds trading Anadarko Petroleum Corporation (NYSE:APC)?
At the Q3’s end, a total of 70 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from the second quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Ken Griffin’s Citadel Investment Group has the largest position in Anadarko Petroleum Corporation (NYSE:APC), worth close to $543.8 million, amounting to 0.5% of its total 13F portfolio. Coming in second is David Costen Haley’s HBK Investments, with a $531.4 million call position; the fund has 6.5% of its 13F portfolio invested in the stock. Other professional money managers that are bullish consist of Jonathon Jacobson’s Highfields Capital Management, Phill Gross and Robert Atchinson’s Adage Capital Management and Boykin Curry’s Eagle Capital Management.
Due to the fact that Anadarko Petroleum Corporation (NYSE:APC) has witnessed a declination in interest from the smart money, it’s easy to see that there was a specific group of funds who sold off their entire stakes in the third quarter. Intriguingly, Matthew Sidman’s Three Bays Capital dropped the largest stake of all the hedgies watched by Insider Monkey, comprising about $384.1 million in stock. Marc Lisker, Glenn Fuhrman and John Phelan’s fund, MSDC Management, also dropped its stock, about $49.3 million worth. These moves are important to note, as aggregate hedge fund interest fell by 5 funds in the third quarter.
Let’s also examine hedge fund activity in other stocks similar to Anadarko Petroleum Corporation (NYSE:APC). These stocks are China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), Estee Lauder Companies Inc (NYSE:EL), Manulife Financial Corporation (USA) (NYSE:MFC), and Wipro Limited (ADR) (NYSE:WIT). This group of stocks’ market valuations are closest to APC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CHU | 9 | 33921 | 1 |
| EL | 27 | 466256 | -4 |
| MFC | 16 | 245006 | 1 |
| WIT | 7 | 88311 | 1 |
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $208 million. That figure was $3.38 billion in APC’s case. Estee Lauder Companies Inc (NYSE:EL) is the most popular stock in this table with 27 long positions, while Wipro Limited (ADR) (NYSE:WIT) is the least popular one. Compared to these stocks Anadarko Petroleum Corporation (NYSE:APC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
