Do Hedge Funds and Insiders Love Novartis AG (ADR) (NYSE:NVS)?

Novartis AG (ADR) (NYSE:NVS) has experienced a decrease in activity from the world’s largest hedge funds of late.

Novartis AG (ADR) (NYSE:NVS)

At the moment, there are tons of gauges market participants can use to track the equity markets. A duo of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can trounce their index-focused peers by a solid amount (see just how much).

Equally as beneficial, bullish insider trading activity is a second way to break down the financial markets. Just as you’d expect, there are lots of stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this strategy if piggybackers understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a look at the latest action encompassing Novartis AG (ADR) (NYSE:NVS).

What have hedge funds been doing with Novartis AG (ADR) (NYSE:NVS)?

At year’s end, a total of 18 of the hedge funds we track were long in this stock, a change of -28% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes significantly.

Of the funds we track, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in Novartis AG (ADR) (NYSE:NVS). Fisher Asset Management has a $319 million position in the stock, comprising 0.9% of its 13F portfolio. On Fisher Asset Management’s heels is John Osterweis of Osterweis Capital Management, with a $18 million position; 0% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Joseph Edelman’s Perceptive Advisors, and John Zaro’s Bourgeon Capital.

Judging by the fact that Novartis AG (ADR) (NYSE:NVS) has experienced a declination in interest from hedge fund managers, logic holds that there was a specific group of hedge funds who were dropping their positions entirely last quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the biggest stake of the “upper crust” of funds we key on, valued at an estimated $183 million in stock., and Peter J. Eichler Jr. of Aletheia Research and Management was right behind this move, as the fund sold off about $5 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 7 funds last quarter.

What do corporate executives and insiders think about Novartis AG (ADR) (NYSE:NVS)?

Bullish insider trading is particularly usable when the company in focus has seen transactions within the past six months. Over the last 180-day time period, Novartis AG (ADR) (NYSE:NVS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns demonstrated by Insider Monkey’s strategies, everyday investors must always watch hedge fund and insider trading activity, and Novartis AG (ADR) (NYSE:NVS) shareholders fit into this picture quite nicely.

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

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 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

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!