Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

FairPoint Communications Inc (FRP): Are Hedge Funds Right About This Stock?

Page 1 of 2

FairPoint Communications Inc (NASDAQ:FRP) was in 11 hedge funds’ portfolio at the end of the first quarter of 2013. FRP investors should be aware of a decrease in enthusiasm from smart money of late. There were 12 hedge funds in our database with FRP holdings at the end of the previous quarter.

FairPoint Communications Inc (NASDAQ:FRP)

To the average investor, there are tons of methods market participants can use to analyze their holdings. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can outperform the S&P 500 by a solid margin (see just how much).

Equally as important, positive insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are lots of incentives for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this method if investors understand what to do (learn more here).

Consequently, it’s important to take a gander at the latest action encompassing FairPoint Communications Inc (NASDAQ:FRP).

How have hedgies been trading FairPoint Communications Inc (NASDAQ:FRP)?

At Q1’s end, a total of 11 of the hedge funds we track were long in this stock, a change of -8% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes substantially.

When looking at the hedgies we track, John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co had the biggest position in FairPoint Communications Inc (NASDAQ:FRP), worth close to $38.3 million, accounting for 2.5% of its total 13F portfolio. On Angelo Gordon & Co’s heels is Anchorage Advisors, managed by Kevin Michael Ulrich, which held a $19.1 million position; 1.2% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include Eric Edidin and Josh Lobel’s Archer Capital Management, John Paulson’s Paulson & Co and Howard Guberman’s Gruss Asset Management.

Because FairPoint Communications Inc (NASDAQ:FRP) has experienced declining sentiment from hedge fund managers, logic holds that there were a few money managers that slashed their full holdings in Q1. Interestingly, Israel Englander’s Millennium Management cut the biggest position of the “upper crust” of funds we track, comprising an estimated $0.1 million in stock. These transactions are important to note, as aggregate hedge fund interest fell by 1 funds in Q1.

Insider trading activity in FairPoint Communications Inc (NASDAQ:FRP)

Insider buying is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time period, FairPoint Communications Inc (NASDAQ:FRP) has experienced 1 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to FairPoint Communications Inc (NASDAQ:FRP). These stocks are EarthLink, Inc. (NASDAQ:ELNK), Alaska Communications Systems Group Inc (NASDAQ:ALSK), Shenandoah Telecommunications Company (NASDAQ:SHEN), Hickory Tech Corporation (NASDAQ:HTCO), and magicJack VocalTec Ltd (NASDAQ:CALL). All of these stocks are in the telecom services – domestic industry and their market caps match FRP’s market cap.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!