Abbott Laboratories (NYSE:ABT): Hedge Funds Are Bearish and Insiders Are Bullish, What Should You Do?

Abbott Laboratories (NYSE:ABT) was in 50 hedge funds’ portfolio at the end of the fourth quarter of 2012. ABT shareholders have witnessed a decrease in enthusiasm from smart money of late. There were 54 hedge funds in our database with ABT holdings at the end of the previous quarter.

To most traders, hedge funds are seen as underperforming, outdated investment vehicles of yesteryear. While there are greater than 8000 funds in operation today, we at Insider Monkey choose to focus on the moguls of this group, close to 450 funds. It is estimated that this group controls the majority of all hedge funds’ total capital, and by paying attention to their highest performing picks, we have unsheathed a few investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Abbott Laboratories (NYSE:ABT)Just as beneficial, positive insider trading sentiment is another way to break down the marketplace. There are lots of reasons for an insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the impressive potential of this method if investors understand where to look (learn more here).

Keeping this in mind, we’re going to take a peek at the recent action encompassing Abbott Laboratories (NYSE:ABT).

Hedge fund activity in Abbott Laboratories (NYSE:ABT)

Heading into 2013, a total of 50 of the hedge funds we track were bullish in this stock, a change of -7% from one quarter earlier. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings significantly.

According to our comprehensive database, Mason Hawkins’s Southeastern Asset Management had the biggest position in Abbott Laboratories (NYSE:ABT), worth close to $456 million, comprising 2% of its total 13F portfolio. The second largest stake is held by Southeastern Asset Management, managed by Mason Hawkins, which held a $245 million position; the fund has 1.1% of its 13F portfolio invested in the stock (Hawkins’s 13F reported two seperate stakes in the company, which can be seen here). Remaining hedgies with similar optimism include Ric Dillon’s Diamond Hill Capital, Cliff Asness’s AQR Capital Management and Phill Gross and Robert Atchinson’s Adage Capital Management.

Due to the fact that Abbott Laboratories (NYSE:ABT) has experienced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedge funds that elected to cut their entire stakes in Q4. It’s worth mentioning that Ricky Sandler’s Eminence Capital cut the largest position of all the hedgies we key on, valued at close to $81 million in stock.. Christopher MedlockáJames’s fund, Partner Fund Management, also sold off its stock, about $61 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds in Q4.

What do corporate executives and insiders think about Abbott Laboratories (NYSE:ABT)?

Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time period, Abbott Laboratories (NYSE:ABT) has experienced 1 unique insiders purchasing, and 12 insider sales (see the details of insider trades here).

With the returns shown by our tactics, retail investors should always watch hedge fund and insider trading sentiment, and Abbott Laboratories (NYSE:ABT) is no exception.

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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!