Cellcom Israel Ltd. (CEL): Are Hedge Funds Right About This Stock?

Is Cellcom Israel Ltd. (NYSE:CEL) going to take off soon? Money managers are taking a bullish view. The number of long hedge fund bets rose by 3 in recent months.

Cellcom Israel Ltd. (NYSE:CEL)In the eyes of most stock holders, hedge funds are seen as worthless, outdated investment tools of the past. While there are more than 8000 funds in operation at present, we choose to focus on the masters of this group, about 450 funds. It is widely believed that this group has its hands on the lion’s share of the smart money’s total asset base, and by keeping an eye on their highest performing picks, we have determined a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually 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 outperformed the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).

Equally as important, optimistic insider trading activity is a second way to break down the marketplace. There are plenty of reasons for an executive to sell shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the impressive potential of this method if shareholders understand where to look (learn more here).

Keeping this in mind, we’re going to take a peek at the key action regarding Cellcom Israel Ltd. (NYSE:CEL).

Hedge fund activity in Cellcom Israel Ltd. (NYSE:CEL)

At the end of the fourth quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 50% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings substantially.

Of the funds we track, Jim Simons’s Renaissance Technologies had the largest position in Cellcom Israel Ltd. (NYSE:CEL), worth close to $25 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $1.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Israel Englander’s Millennium Management, Neil Chriss’s Hutchin Hill Capital and Mike Vranos’s Ellington.

Now, key hedge funds were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, assembled the most outsized position in Cellcom Israel Ltd. (NYSE:CEL). Citadel Investment Group had 1.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1 million position during the quarter. The only other fund with a brand new CEL position is Steven Cohen’s SAC Capital Advisors.

What have insiders been doing with Cellcom Israel Ltd. (NYSE:CEL)?

Bullish insider trading is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time frame, Cellcom Israel Ltd. (NYSE:CEL) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Cellcom Israel Ltd. (NYSE:CEL). These stocks are Pendrell Corporation – Class A (NASDAQ:PCO), Leap Wireless International, Inc. (NASDAQ:LEAP), Ubiquiti Networks Inc (NASDAQ:UBNT), Partner Communications Company Ltd (ADR) (NASDAQ:PTNR), and NII Holdings, Inc. (NASDAQ:NIHD). This group of stocks belong to the wireless communications industry and their market caps are closest to CEL’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Pendrell Corporation – Class A (NASDAQ:PCO) 10 0 1
Leap Wireless International, Inc. (NASDAQ:LEAP) 15 0 5
Ubiquiti Networks Inc (NASDAQ:UBNT) 6 0 6
Partner Communications Company Ltd (ADR) (NASDAQ:PTNR) 7 0 0
NII Holdings, Inc. (NASDAQ:NIHD) 18 0 0

With the results demonstrated by our studies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Cellcom Israel Ltd. (NYSE:CEL) is an important part of this process.

Click here to learn why you should track hedge funds

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

5 Least Expensive Cities in the World

Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

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

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How 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

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!