In the financial world, there are tons of indicators shareholders can use to watch Mr. Market. Some of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass their index-focused peers by a healthy amount (see just how much).
Equally as important, bullish insider trading sentiment is a second way to parse down the world of equities. There are a number of stimuli for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this method if you understand what to do (learn more here).
Now, let’s take a gander at the recent action surrounding Chiquita Brands International, Inc. (NYSE:CQB).
Hedge fund activity in Chiquita Brands International, Inc. (NYSE:CQB)
Heading into 2013, a total of 17 of the hedge funds we track were bullish in this stock, a change of 6% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Himanshu H. Shah’s Shah Capital Management had the most valuable position in Chiquita Brands International, Inc. (NYSE:CQB), worth close to $14 million, comprising 13.7% of its total 13F portfolio. On Shah Capital Management’s heels is Third Avenue Management, managed by Martin Whitman, which held a $13 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Cliff Asness’s AQR Capital Management, Thomas Steyer’s Farallon Capital and Nelson Obus’s Wynnefield Capital.
With a general bullishness amongst the heavyweights, some big names have jumped into Chiquita Brands International, Inc. (NYSE:CQB) headfirst. Bronson Point Partners, managed by Larry Foley and Paul Farrell, established the most outsized position in Chiquita Brands International, Inc. (NYSE:CQB). Bronson Point Partners had 3 million invested in the company at the end of the quarter. Matthew Halbower’s Pentwater Capital Management also made a $2 million investment in the stock during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors, Paul Tudor Jones’s Tudor Investment Corp, and Steven Cohen’s SAC Capital Advisors.
How have insiders been trading Chiquita Brands International, Inc. (NYSE:CQB)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time period, Chiquita Brands International, Inc. (NYSE:CQB) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
With the returns exhibited by our research, everyday investors should always keep an eye on hedge fund and insider trading activity, and Chiquita Brands International, Inc. (NYSE:CQB) is an important part of this process.
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