Hedge Funds Are Buying Weatherford International Ltd (NYSE:WFT)

Weatherford International Ltd (NYSE:WFT) was in 34 hedge funds’ portfolio at the end of December. WFT has experienced an increase in hedge fund sentiment in recent months. There were 33 hedge funds in our database with WFT positions at the end of the previous quarter.

To most investors, hedge funds are viewed as slow, outdated financial vehicles of years past. While there are more than 8000 funds with their doors open at present, we at Insider Monkey look at the upper echelon of this group, around 450 funds. Most estimates calculate that this group controls most of the hedge fund industry’s total asset base, and by keeping an eye on their highest performing stock picks, we have uncovered a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Just as important, optimistic insider trading activity is another way to break down the financial markets. Obviously, there are a variety of stimuli for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).

With all of this in mind, we’re going to take a peek at the key action regarding Weatherford International Ltd (NYSE:WFT).

How are hedge funds trading Weatherford International Ltd (NYSE:WFT)?

Heading into 2013, a total of 34 of the hedge funds we track were long in this stock, a change of 3% from the third quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially.

When looking at the hedgies we track, William B. Gray’s Orbis Investment Management had the most valuable position in Weatherford International Ltd (NYSE:WFT), worth close to $670 million, comprising 6.7% of its total 13F portfolio. Coming in second is Steven Cohen of SAC Capital Advisors, with a $140 million call position; 1.8% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Mario Gabelli’s GAMCO Investors, Jeffrey Vinik’s Vinik Asset Management and Ken Griffin’s Citadel Investment Group.

Consequently, key hedge funds were breaking ground themselves. Vinik Asset Management, managed by Jeffrey Vinik, initiated the biggest position in Weatherford International Ltd (NYSE:WFT). Vinik Asset Management had 62 million invested in the company at the end of the quarter. David Tepper’s Appaloosa Management LP also made a $56 million investment in the stock during the quarter. The other funds with brand new WFT positions are Israel Englander’s Millennium Management, Boaz Weinstein’s Saba Capital, and Paul Tanico’s Castlerock Asset Management.

What have insiders been doing with Weatherford International Ltd (NYSE:WFT)?

Bullish insider trading is best served when the company in focus has experienced transactions within the past six months. Over the latest six-month time frame, Weatherford International Ltd (NYSE:WFT) has seen 7 unique insiders buying, and zero insider sales (see the details of insider trades here).

With the returns shown by our strategies, everyday investors should always pay attention to hedge fund and insider trading activity, and Weatherford International Ltd (NYSE:WFT) is no exception.

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

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

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

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!