The government requires hedge funds and wealthy investors with over a certain portfolio size to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings discloses the funds’ positions on September 30. We at Insider Monkey have made an extensive database of more than 700 of those elite funds and prominent investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Alcatel Lucent SA (ADR) (NYSE:ALU) based on those filings.
Alcatel Lucent SA (ADR) (NYSE:ALU) shareholders have witnessed an increase in the hedge fund interest of late. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Martin Marietta Materials, Inc. (NYSE:MLM), Banco de Chile (ADR) (NYSE:BCH), and Alaska Air Group, Inc. (NYSE:ALK) to gather more data points.
To most traders, hedge funds are viewed as worthless, outdated investment vehicles of yesteryear. While there are greater than 8000 funds trading today, our experts look at the top tier of this club, about 700 funds. Most estimates calculate that this group of people preside over the majority of the smart money’s total capital, and by monitoring their finest equity investments, Insider Monkey has discovered several investment strategies that have historically exceeded the broader indices. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points a year for a decade in their back tests.
With all of this in mind, let’s analyze the recent action surrounding Alcatel Lucent SA (ADR) (NYSE:ALU).
Hedge fund activity in Alcatel Lucent SA (ADR) (NYSE:ALU)
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 10% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Alpine Associates, managed by Robert Emil Zoellner, holds the most valuable position in Alcatel Lucent SA (ADR) (NYSE:ALU). Alpine Associates has a $51.2 million position in the stock, comprising 2% of its 13F portfolio. The second largest stake is held by Carlson Capital, managed by Clint Carlson, which holds a $22.5 million position; 0.3% of its 13F portfolio is allocated to the company. Hedge funds and other institutional investors that are bullish comprise Nick Niell’s Arrowgrass Capital Partners, Neil Chriss’ Hutchin Hill Capital, and Millennium Management Subsidiary’s Green Arrow Capital Management.