Is The Boeing Company (NYSE:BA) the right investment to pursue these days? The smart money is betting on the stock. The number of long hedge fund bets improved by 5 lately.
To the average investor, there are a multitude of methods investors can use to track Mr. Market. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can trounce the S&P 500 by a solid margin (see just how much).
Equally as integral, positive insider trading activity is another way to parse down the financial markets. There are plenty of stimuli for an upper level exec to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this method if shareholders know what to do (learn more here).
With all of this in mind, it's important to take a gander at the key action surrounding The Boeing Company (NYSE:BA).
At the end of the fourth quarter, a total of 41 of the hedge funds we track were long in this stock, a change of 14% from one quarter earlier. With the smart money's capital changing hands, there exists an "upper tier" of notable hedge fund managers who were upping their stakes significantly.
Of the funds we track, Doug Silverman's Senator Investment Group had the most valuable call position in The Boeing Company (NYSE:BA), worth close to $188 million, accounting for 4.1% of its total 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $188 million position; 2.4% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Steven Cohen's SAC Capital Advisors, Doug Silverman's Senator Investment Group and Phill Gross and Robert Atchinson's Adage Capital Management.
Consequently, some big names were breaking ground themselves. Greenhaven Associates, managed by Edgar Wachenheim, created the largest position in The Boeing Company (NYSE:BA). Greenhaven Associates had 78 million invested in the company at the end of the quarter. Michael Messner's Seminole Capital (Investment Mgmt) also initiated a $59 million position during the quarter. The following funds were also among the new BA investors: John Osterweis's Osterweis Capital Management, Douglas Hirsch's Seneca Capital, and SAC Subsidiary's CR Intrinsic Investors.
Insider buying is particularly usable when the company we're looking at has seen transactions within the past half-year. Over the last 180-day time frame, The Boeing Company (NYSE:BA) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the results shown by Insider Monkey's time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and The Boeing Company (NYSE:BA) shareholders fit into this picture quite nicely.
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.