Dr Pepper Snapple Group Inc. (DPS): Are Hedge Funds Right About This Stock?

Dr Pepper Snapple Group Inc. (NYSE:DPS) was in 22 hedge funds’ portfolio at the end of the first quarter of 2013. DPS shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months. There were 17 hedge funds in our database with DPS holdings at the end of the previous quarter.

In the 21st century investor’s toolkit, there are many gauges shareholders can use to analyze the equity markets. Two of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can beat their index-focused peers by a solid margin (see just how much).

Dr Pepper Snapple Group Inc. (NYSE:DPS)Just as key, bullish insider trading activity is another way to parse down the world of equities. There are a variety of incentives for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the useful potential of this strategy if you understand where to look (learn more here).

With these “truths” under our belt, it’s important to take a look at the key action encompassing Dr Pepper Snapple Group Inc. (NYSE:DPS).

How have hedgies been trading Dr Pepper Snapple Group Inc. (NYSE:DPS)?

At Q1′s end, a total of 22 of the hedge funds we track held long positions in this stock, a change of 29% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings considerably.

When looking at the hedgies we track, GAMCO Investors, managed by Mario Gabelli, holds the biggest position in Dr Pepper Snapple Group Inc. (NYSE:DPS). GAMCO Investors has a $120.5 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held by Bill Miller of Legg Mason Capital Management, with a $80.3 million position; 1.4% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Now, key hedge funds have been driving this bullishness. Renaissance Technologies, managed by Jim Simons, created the most outsized position in Dr Pepper Snapple Group Inc. (NYSE:DPS). Renaissance Technologies had 27.5 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $24.5 million investment in the stock during the quarter. The following funds were also among the new DPS investors: Dmitry Balyasny’s Balyasny Asset Management, Clint Carlson’s Carlson Capital, and Michael Messner’s Seminole Capital (Investment Mgmt).

Insider trading activity in Dr Pepper Snapple Group Inc. (NYSE:DPS)

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the latest 180-day time period, Dr Pepper Snapple Group Inc. (NYSE:DPS) has seen 1 unique insiders buying, and 9 insider sales (see the details of insider trades here).

With the returns demonstrated by our time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Dr Pepper Snapple Group Inc. (NYSE:DPS) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

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 Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

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!