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).
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.