Liberty Media Corp (NASDAQ:LMCA) investors should be aware of an increase in support from the world’s most elite money managers recently.
In the eyes of most investors, hedge funds are seen as worthless, outdated financial vehicles of years past. While there are over 8000 funds with their doors open at present, we at Insider Monkey look at the crème de la crème of this group, close to 450 funds. Most estimates calculate that this group has its hands on the majority of the smart money’s total asset base, and by tracking their highest performing investments, we have unearthed a number of investment strategies that have historically outperformed the broader indices. 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 started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Equally as beneficial, positive insider trading sentiment is a second way to parse down the world of equities. As the old adage goes: there are plenty of stimuli for an executive to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if piggybackers understand where to look (learn more here).
Now, we’re going to take a gander at the recent action regarding Liberty Media Corp (NASDAQ:LMCA).
What does the smart money think about Liberty Media Corp (NASDAQ:LMCA)?
Heading into 2013, a total of 55 of the hedge funds we track were bullish in this stock, a change of 2% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings considerably.
According to our comprehensive database, Berkshire Hathaway, managed by Warren Buffett, holds the most valuable position in Liberty Media Corp (NASDAQ:LMCA). Berkshire Hathaway has a $652 million billion position in the stock, comprising 0.9% of its 13F portfolio. Sitting at the No. 2 spot is Chase Coleman of Tiger Global Management LLC, with a $386 million position; 7.2% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Murray Stahl’s Horizon Asset Management, Michael Lowenstein’s Kensico Capital and John Thaler’s JAT Capital Management.
With a general bullishness amongst the heavyweights, some big names have jumped into Liberty Media Corp (NASDAQ:LMCA) headfirst. Tiger Global Management LLC, managed by Chase Coleman, initiated the most outsized position in Liberty Media Corp (NASDAQ:LMCA). Tiger Global Management LLC had 386 million invested in the company at the end of the quarter. Lee Ainslie’s Maverick Capital also made a $71 million investment in the stock during the quarter. The following funds were also among the new LMCA investors: Ryan Frick and Oliver Evans’s Dorsal Capital Management, Stephen J. Errico’s Locust Wood Capital Advisers, and Jim Simons’s Renaissance Technologies.
What do corporate executives and insiders think about Liberty Media Corp (NASDAQ:LMCA)?
Bullish insider trading is most useful when the company in question has experienced transactions within the past half-year. Over the latest six-month time frame, Liberty Media Corp (NASDAQ:LMCA) has seen 1 unique insiders buying, and 6 insider sales (see the details of insider trades here).
With the results demonstrated by our research, everyday investors must always monitor hedge fund and insider trading sentiment, and Liberty Media Corp (NASDAQ:LMCA) applies perfectly to this mantra.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.
