WPP PLC (ADR) (NASDAQ:WPPGY) investors should be aware of an increase in enthusiasm from smart money of late.
In today’s marketplace, there are tons of gauges shareholders can use to analyze the equity markets. Two of the best 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 elite investment managers can outclass their index-focused peers by a superb margin (see just how much).
Just as important, optimistic insider trading sentiment is another way to break down the marketplace. As the old adage goes: there are many stimuli for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).
Keeping this in mind, we’re going to take a gander at the latest action regarding WPP PLC (ADR) (NASDAQ:WPPGY).
How are hedge funds trading WPP PLC (ADR) (NASDAQ:WPPGY)?
In preparation for this year, a total of 8 of the hedge funds we track held long positions in this stock, a change of 100% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in WPP PLC (ADR) (NASDAQ:WPPGY). Fisher Asset Management has a $6.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Fisher Asset Management’s heels is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $5.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include J. Alan Reid, Jr.’s Forward Management, Jim Simons’s Renaissance Technologies and David Costen Haley’s HBK Investments.
Consequently, key money managers have been driving this bullishness. Renaissance Technologies, managed by Jim Simons, assembled the biggest position in WPP PLC (ADR) (NASDAQ:WPPGY). Renaissance Technologies had 2.1 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $0.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.
What have insiders been doing with WPP PLC (ADR) (NASDAQ:WPPGY)?
Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has experienced transactions within the past half-year. Over the last 180-day time frame, WPP PLC (ADR) (NASDAQ:WPPGY) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to WPP PLC (ADR) (NASDAQ:WPPGY). These stocks are Monster Worldwide, Inc. (NYSE:MWW), Focus Media Holding Limited (ADR) (NASDAQ:FMCN), Lamar Advertising Co (NASDAQ:LAMR), Interpublic Group of Companies Inc (NYSE:IPG), and Omnicom Group Inc. (NYSE:OMC). This group of stocks are in the advertising agencies industry and their market caps match WPPGY’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Monster Worldwide, Inc. (NYSE:MWW) | 17 | 0 | 0 |
| Focus Media Holding Limited (ADR) (NASDAQ:FMCN) | 22 | 0 | 0 |
| Lamar Advertising Co (NASDAQ:LAMR) | 29 | 0 | 7 |
| Interpublic Group of Companies Inc (NYSE:IPG) | 23 | 1 | 2 |
| Omnicom Group Inc. (NYSE:OMC) | 20 | 0 | 2 |
With the results exhibited by the aforementioned time-tested strategies, retail investors must always monitor hedge fund and insider trading activity, and WPP PLC (ADR) (NASDAQ:WPPGY) is an important part of this process.
