Hedge Funds Are Buying Service Corporation International (NYSE:SCI)

Service Corporation International (NYSE:SCI) has experienced an increase in activity from the world’s largest hedge funds in recent months.

Mason Hawkins

According to most stock holders, hedge funds are assumed to be underperforming, old financial tools of the past. While there are more than 8000 funds trading at present, we hone in on the elite of this group, around 450 funds. It is widely believed that this group controls the majority of all hedge funds’ total capital, and by monitoring their highest performing equity investments, we have revealed a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Equally as important, optimistic insider trading activity is another way to break down the world of equities. Obviously, there are many stimuli for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the useful potential of this method if piggybackers understand where to look (learn more here).

With all of this in mind, it’s important to take a peek at the recent action encompassing Service Corporation International (NYSE:SCI).

Hedge fund activity in Service Corporation International (NYSE:SCI)

At the end of the fourth quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of 64% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings substantially.

Of the funds we track, Mason Hawkins’s Southeastern Asset Management had the most valuable position in Service Corporation International (NYSE:SCI), worth close to $339 million, comprising 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is David Cohen and Harold Levy of Iridian Asset Management, with a $77 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, D. E. Shaw’s D E Shaw and Jane Mendillo’s Harvard Management Co.

With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. CR Intrinsic Investors, managed by SAC Subsidiary, created the most outsized position in Service Corporation International (NYSE:SCI). CR Intrinsic Investors had 7 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $3 million investment in the stock during the quarter. The other funds with brand new SCI positions are John Overdeck and David Siegel’s Two Sigma Advisors, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Mike Vranos’s Ellington.

How have insiders been trading Service Corporation International (NYSE:SCI)?

Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the last 180-day time period, Service Corporation International (NYSE:SCI) has experienced 1 unique insiders buying, and 4 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s research, retail investors should always pay attention to hedge fund and insider trading sentiment, and Service Corporation International (NYSE:SCI) 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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!