Hedge Funds Are Dumping Laboratory Corp. of America Holdings (NYSE:LH)

Laboratory Corp. of America Holdings (NYSE:LH) has seen a decrease in support from the world’s most elite money managers in recent months.

In the eyes of most traders, hedge funds are viewed as unimportant, old financial tools of yesteryear. While there are greater than 8000 funds with their doors open at the moment, we choose to focus on the masters of this club, about 450 funds. It is widely believed that this group controls most of the hedge fund industry’s total capital, and by watching their highest performing picks, we have formulated a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year 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 (see all of our picks from August).

Laboratory Corp. of America Holdings

Just as key, positive insider trading activity is another way to parse down the financial markets. There are plenty of reasons for an insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this strategy if piggybackers understand what to do (learn more here).

Now, let’s take a look at the recent action surrounding Laboratory Corp. of America Holdings (NYSE:LH).

What does the smart money think about Laboratory Corp. of America Holdings (NYSE:LH)?

At year’s end, a total of 23 of the hedge funds we track held long positions in this stock, a change of -15% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially.

When looking at the hedgies we track, John Shapiro’s Chieftain Capital had the largest position in Laboratory Corp. of America Holdings (NYSE:LH), worth close to $130 million, comprising 10.3% of its total 13F portfolio. Sitting at the No. 2 spot is Orbis Investment Management, managed by William B. Gray, which held a $95 million position; 0.7% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Richard S. Pzena’s Pzena Investment Management, Michael A. Price and Amos Meron’s Empyrean Capital Partners and Wallace Weitz’s Wallace R. Weitz & Co..

Due to the fact that Laboratory Corp. of America Holdings (NYSE:LH) has experienced a declination in interest from hedge fund managers, it’s safe to say that there exists a select few hedgies that decided to sell off their full holdings at the end of the year. It’s worth mentioning that Glenn Greenberg’s Brave Warrior Capital cut the biggest position of the 450+ funds we monitor, totaling about $78 million in stock., and Scott McLellan of Marble Arch Investments was right behind this move, as the fund cut about $37 million worth. These transactions are interesting, as total hedge fund interest dropped by 4 funds at the end of the year.

What do corporate executives and insiders think about Laboratory Corp. of America Holdings (NYSE:LH)?

Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past half-year. Over the last 180-day time period, Laboratory Corp. of America Holdings (NYSE:LH) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results exhibited by our time-tested strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Laboratory Corp. of America Holdings (NYSE:LH) is an important part of this process.

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

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

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

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!