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Bunge Ltd (NYSE:BG): Are Hedge Funds Right About This Stock?

Bunge Ltd (NYSE:BG) investors should pay attention to an increase in hedge fund sentiment lately.

Bunge Ltd (BG)

At the moment, there are tons of methods investors can use to monitor the equity markets. A pair of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outclass the market by a solid margin (see just how much).

Just as key, optimistic insider trading sentiment is a second way to parse down the financial markets. There are a number of motivations for an executive to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).

With these “truths” under our belt, let’s take a gander at the key action regarding Bunge Ltd (NYSE:BG).

What have hedge funds been doing with Bunge Ltd (NYSE:BG)?

At the end of the fourth quarter, a total of 18 of the hedge funds we track were bullish in this stock, a change of 13% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes considerably.

Of the funds we track, Phill Gross and Robert Atchinson’s Adage Capital Management had the most valuable position in Bunge Ltd (NYSE:BG), worth close to $83 million, accounting for 0.3% of its total 13F portfolio. Coming in second is Robert Bishop of Impala Asset Management, with a $58 million position; the fund has 3% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Ken Griffin’s Citadel Investment Group, Clint Carlson’s Carlson Capital and Steven Cohen’s SAC Capital Advisors.

As aggregate interest increased, specific money managers have been driving this bullishness. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the most outsized position in Bunge Ltd (NYSE:BG). Adage Capital Management had 83 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $45 million position during the quarter. The other funds with brand new BG positions are Andrew R. Midler’s Savitr Capital, Douglas W. Case’s Advanced Investment Partners, and Philip Hempleman’s Ardsley Partners.

How have insiders been trading Bunge Ltd (NYSE:BG)?

Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time period, Bunge Ltd (NYSE:BG) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Bunge Ltd (NYSE:BG) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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