Is Credicorp Ltd. (USA) (NYSE:BAP) going to take off soon? Investors who are in the know are becoming hopeful. The number of bullish hedge fund bets increased by 5 recently.
In the 21st century investor’s toolkit, there are a multitude of indicators shareholders can use to monitor the equity markets. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outclass the market by a healthy margin (see just how much).
Just as beneficial, positive insider trading activity is another way to break down the stock market universe. Obviously, there are plenty of stimuli for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” understand where to look (learn more here).
Consequently, let’s take a peek at the recent action surrounding Credicorp Ltd. (USA) (NYSE:BAP).
How have hedgies been trading Credicorp Ltd. (USA) (NYSE:BAP)?
Heading into 2013, a total of 18 of the hedge funds we track held long positions in this stock, a change of 38% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Credicorp Ltd. (USA) (NYSE:BAP). Renaissance Technologies has a $75 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $45 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Robert B. Gillam’s McKinley Capital Management, Ken Fisher’s Fisher Asset Management and Rob Citrone’s Discovery Capital Management.
As industrywide interest jumped, key hedge funds have jumped into Credicorp Ltd. (USA) (NYSE:BAP) headfirst. Discovery Capital Management, managed by Rob Citrone, initiated the most outsized position in Credicorp Ltd. (USA) (NYSE:BAP). Discovery Capital Management had 21 million invested in the company at the end of the quarter. Geoffrey S. McCuskey’s Riverside Advisors also made a $5 million investment in the stock during the quarter. The other funds with brand new BAP positions are Louis Bacon’s Moore Global Investments, J. Alan Reid, Jr.’s Forward Management, and Charles Davidson’s Wexford Capital.
How are insiders trading Credicorp Ltd. (USA) (NYSE:BAP)?
Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Credicorp Ltd. (USA) (NYSE:BAP) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results demonstrated by the aforementioned strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Credicorp Ltd. (USA) (NYSE:BAP) is an important part of this process.
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