Thermo Fisher Scientific Inc. (NYSE:TMO) has experienced a decrease in enthusiasm from smart money of late.
At the moment, there are tons of indicators market participants can use to analyze publicly traded companies. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass the broader indices by a healthy margin (see just how much).
Equally as beneficial, optimistic insider trading activity is another way to break down the world of equities. There are many incentives for a bullish insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if investors know what to do (learn more here).
Now, let’s take a peek at the key action surrounding Thermo Fisher Scientific Inc. (NYSE:TMO).
What does the smart money think about Thermo Fisher Scientific Inc. (NYSE:TMO)?
Heading into 2013, a total of 40 of the hedge funds we track held long positions in this stock, a change of -13% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
Of the funds we track, Boykin Curry’s Eagle Capital Management had the most valuable position in Thermo Fisher Scientific Inc. (NYSE:TMO), worth close to $352 million billion, accounting for 2.5% of its total 13F portfolio. On Eagle Capital Management’s heels is Blue Ridge Capital, managed by John Griffin, which held a $320 million position; the fund has 4.4% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Larry Robbins’s Glenview Capital and Phill Gross and Robert Atchinson’s Adage Capital Management.
Judging by the fact that Thermo Fisher Scientific Inc. (NYSE:TMO) has witnessed a declination in interest from hedge fund managers, it’s easy to see that there was a specific group of funds that decided to sell off their positions entirely at the end of the year. At the top of the heap, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC sold off the largest investment of the “upper crust” of funds we monitor, worth an estimated $216 million in stock.. Andreas Halvorsen’s fund, Viking Global, also said goodbye to its stock, about $112 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 6 funds at the end of the year.
How have insiders been trading Thermo Fisher Scientific Inc. (NYSE:TMO)?
Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time period, Thermo Fisher Scientific Inc. (NYSE:TMO) has seen zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s time-tested strategies, everyday investors should always monitor hedge fund and insider trading activity, and Thermo Fisher Scientific Inc. (NYSE:TMO) is an important part of this process.
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