Hedge Funds Are Betting On Alcoa Inc (NYSE:AA)

Alcoa Inc (NYSE:AA) has experienced an increase in enthusiasm from smart money of late.

In the financial world, there are a multitude of gauges shareholders can use to track Mr. Market. Some of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can outclass the S&P 500 by a significant margin (see just how much).

AlcoaJust as beneficial, bullish insider trading activity is another way to parse down the world of equities. Just as you’d expect, there are plenty of motivations for a corporate insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).

With all of this in mind, we’re going to take a glance at the latest action surrounding Alcoa Inc (NYSE:AA).

What have hedge funds been doing with Alcoa Inc (NYSE:AA)?

In preparation for this year, a total of 20 of the hedge funds we track were long in this stock, a change of 5% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were upping their holdings meaningfully.

According to our comprehensive database, Elm Ridge Capital, managed by Ron Gutfleish, holds the largest position in Alcoa Inc (NYSE:AA). Elm Ridge Capital has a $32 million position in the stock, comprising 3.6% of its 13F portfolio. Sitting at the No. 2 spot is Millennium Management, managed by Israel Englander, which held a $22 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Mario Gabelli’s GAMCO Investors, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.

As industrywide interest jumped, specific money managers were breaking ground themselves. Renaissance Technologies, managed by Jim Simons, initiated the biggest position in Alcoa Inc (NYSE:AA). Renaissance Technologies had 18 million invested in the company at the end of the quarter. Larry Foley and Paul Farrell’s Bronson Point Partners also initiated a $12 million position during the quarter. The following funds were also among the new AA investors: Glenn Russell Dubin’s Highbridge Capital Management, Ken Gray and Steve Walsh’s Bryn Mawr Capital, and Mike Vranos’s Ellington.

How have insiders been trading Alcoa Inc (NYSE:AA)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest six-month time frame, Alcoa Inc (NYSE:AA) has experienced 2 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s strategies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Alcoa Inc (NYSE:AA) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!