Hedge Funds and Insiders Are Bullish On Citigroup and More

Page 2 of 2

Billionaire activist investor Carl Icahn took a position in troubled natural gas producer Chesapeake Energy Corporation (NYSE:CHK) earlier this year after the stock price fell in reaction to concerns that the company might need to sell assets to make cash flow for the year- and have to settle for fire sale prices. See more of Icahn’s projects. It’s become a fairly popular hedge fund pick, and two different Board members made large purchases in November.

Our database of insider trading filings also shows multiple insiders buying The Home Depot, Inc. (NYSE:HD) in the last three months. Fisher Asset Management, managed by billionaire Ken Fisher, was one of the hedge funds who also thought the stock was a good value; the fund bought heavily last quarter and closed September with 8.2 million shares in its portfolio.  Find more stocks Fisher was buying.

Apache Corporation (NYSE:APA) had three insiders buy stock since the beginning of November; though in one case the purchase was fairly small, we’d still consider it to be a target of consensus insider buying. Boykin Curry’s Eagle Capital Management reported a position of 3.4 million shares in its 13F filing.

Hedge funds’ favorite food stock during the third quarter was Mead Johnson Nutrition CO (NYSE:MJN) (research more of hedge funds’ favorite food stocks). The infant formula and children’s nutrition company has had two insiders buy in the last three months, at an average price of about $62.50.

Weatherford International Ltd (NYSE:WFT), an oil and gas equipment and services company, rounded out our list of stocks liked by insiders and by hedge funds. Several insiders bought the stock in mid November, while billionaire Dan Loeb’s Third Point was one of the hedge funds reporting a position. See Dan Loeb’s stock picks.

Page 2 of 2