Clearwire Corporation (NASDAQ:CLWR): Are Hedge Funds Right About This Stock?

Clearwire Corporation (NASDAQ:CLWR) was in 32 hedge funds’ portfolio at the end of December. CLWR has experienced an increase in support from the world’s most elite money managers recently. There were 22 hedge funds in our database with CLWR holdings at the end of the previous quarter.

According to most investors, hedge funds are assumed to be worthless, outdated financial vehicles of years past. While there are over 8000 funds with their doors open at present, we at Insider Monkey hone in on the masters of this club, around 450 funds. It is widely believed that this group has its hands on the majority of the smart money’s total capital, and by tracking their best equity investments, we have revealed a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Just as beneficial, bullish insider trading sentiment is a second way to break down the financial markets. There are a number of stimuli for an insider to drop shares of his or her company, but only one, very obvious reason why they would buy. Several empirical studies have demonstrated the useful potential of this tactic if shareholders know what to do (learn more here).

With all of this in mind, it’s important to take a glance at the recent action regarding Clearwire Corporation (NASDAQ:CLWR).

What does the smart money think about Clearwire Corporation (NASDAQ:CLWR)?

Heading into 2013, a total of 32 of the hedge funds we track were long in this stock, a change of 45% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.

According to our comprehensive database, Mouth Kellett Capital Management, managed by Mark McGoldrick and Jason Maynard, holds the largest position in Clearwire Corporation (NASDAQ:CLWR). Mouth Kellett Capital Management has a $154 million position in the stock, comprising 19.6% of its 13F portfolio. The second largest stake is held by Glenview Capital, managed by Larry Robbins, which held a $87 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Lee Hobson’s Highside Capital Management, John Brennan’s Sirios Capital Management and John Paulson’s Paulson & Co.

As one would reasonably expect, key money managers have jumped into Clearwire Corporation (NASDAQ:CLWR) headfirst. Paulson & Co, managed by John Paulson, assembled the most valuable position in Clearwire Corporation (NASDAQ:CLWR). Paulson & Co had 29 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also initiated a $23 million position during the quarter. The other funds with brand new CLWR positions are Carl Tiedemann and Michael Tiedemann’s TIG Advisors, Curtis Macnguyen’s Ivory Capital (Investment Mgmt), and Robert Emil Zoellner’s Alpine Associates.

What have insiders been doing with Clearwire Corporation (NASDAQ:CLWR)?

Insider buying is at its handiest when the company in focus has seen transactions within the past six months. Over the last half-year time period, Clearwire Corporation (NASDAQ:CLWR) has experienced 1 unique insiders buying, and 8 insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Clearwire Corporation (NASDAQ:CLWR) applies perfectly to this mantra.

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.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

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!