Hedge Funds Are Selling O’Reilly Automotive Inc (NASDAQ:ORLY)

Is O’Reilly Automotive Inc (NASDAQ:ORLY) a buy here? The best stock pickers are turning less bullish. The number of long hedge fund bets stayed the same which is a slightly negative development in our experience

According to most stock holders, hedge funds are assumed to be worthless, old financial vehicles of the past. While there are over 8000 funds in operation today, we look at the upper echelon of this club, close to 450 funds. It is estimated that this group oversees most of the hedge fund industry’s total capital, and by monitoring their top stock picks, we have unearthed a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outperformed 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 topped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

O'Reilly Automotive Inc (NASDAQ:ORLY)Just as beneficial, bullish insider trading sentiment is a second way to parse down the world of equities. Obviously, there are plenty of reasons for an insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if you understand what to do (learn more here).

Consequently, it’s important to take a gander at the key action surrounding O’Reilly Automotive Inc (NASDAQ:ORLY).

What does the smart money think about O’Reilly Automotive Inc (NASDAQ:ORLY)?

In preparation for this year, a total of 22 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Stephen Mandel’s Lone Pine Capital had the biggest position in O’Reilly Automotive Inc (NASDAQ:ORLY), worth close to $194 million, comprising 1.2% of its total 13F portfolio. On Lone Pine Capital’s heels is Ken Griffin of Citadel Investment Group, with a $190 million position; 4.2% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Robert Joseph Caruso’s Select Equity Group, and D. E. Shaw’s D E Shaw.

Because O’Reilly Automotive Inc (NASDAQ:ORLY) has witnessed bearish sentiment from the smart money, it’s easy to see that there were a few hedge funds who sold off their full holdings heading into 2013. Interestingly, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC dumped the biggest stake of the “upper crust” of funds we track, comprising about $68 million in stock.. James Crichton and Adam Weiss’s fund, Scout Capital Management, also said goodbye to its call options., about $25 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How have insiders been trading O’Reilly Automotive Inc (NASDAQ:ORLY)?

Insider buying is most useful when the company in question has experienced transactions within the past half-year. Over the latest 180-day time period, O’Reilly Automotive Inc (NASDAQ:ORLY) has seen zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s studies, everyday investors should always watch hedge fund and insider trading activity, and O’Reilly Automotive Inc (NASDAQ:ORLY) 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

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways 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

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!