Liberty Global Inc. (NASDAQ:LBTYA) was in 44 hedge funds' portfolio at the end of December. LBTYA investors should pay attention to a decrease in support from the world's most elite money managers in recent months. There were 44 hedge funds in our database with LBTYA holdings at the end of the previous quarter.
In the eyes of most shareholders, hedge funds are seen as unimportant, old financial vehicles of yesteryear. While there are greater than 8000 funds in operation today, we at Insider Monkey look at the masters of this club, close to 450 funds. It is widely believed that this group controls the majority of the smart money's total capital, and by tracking their top picks, we have come up with a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Just as beneficial, bullish insider trading activity is another way to parse down the investments you're interested in. As the old adage goes: there are lots of incentives for a bullish insider to sell shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this strategy if "monkeys" know where to look (learn more here).
Keeping this in mind, we're going to take a peek at the latest action encompassing Liberty Global Inc. (NASDAQ:LBTYA).
At year's end, a total of 44 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With hedgies' capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.
When looking at the hedgies we track, Coatue Management, managed by Philippe Laffont, holds the largest position in Liberty Global Inc. (NASDAQ:LBTYA). Coatue Management has a $432 million position in the stock, comprising 7.1% of its 13F portfolio. Coming in second is John Griffin of Blue Ridge Capital, with a $246 million position; 4.9% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include Eric Mindich's Eton Park Capital and Lee Ainslie's Maverick Capital.
Seeing as Liberty Global Inc. (NASDAQ:LBTYA) has experienced a declination in interest from the entirety of the hedge funds we track, logic holds that there lies a certain "tier" of fund managers that slashed their entire stakes in Q4. At the top of the heap, Stephen Mandel's Lone Pine Capital sold off the largest stake of all the hedgies we watch, valued at an estimated $270 million in stock., and John Kleinheinz of Kleinheinz Capital Partners was right behind this move, as the fund sold off about $27 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Liberty Global Inc. (NASDAQ:LBTYA) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns shown by our time-tested strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Liberty Global Inc. (NASDAQ:LBTYA) applies perfectly to this mantra.
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