Hedge Funds Aren’t Crazy About GlaxoSmithKline plc (ADR) (NYSE:GSK) Anymore

GlaxoSmithKline plc (ADR) (NYSE:GSK) shareholders have witnessed a decrease in hedge fund interest recently.

GlaxoSmithKline plc (ADR) (NYSE:GSK)

If you’d ask most market participants, hedge funds are assumed to be slow, outdated investment vehicles of yesteryear. While there are over 8000 funds trading at present, we at Insider Monkey hone in on the leaders of this club, around 450 funds. Most estimates calculate that this group has its hands on the lion’s share of the hedge fund industry’s total capital, and by watching their top picks, we have revealed a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Equally as important, positive insider trading activity is a second way to parse down the stock market universe. Obviously, there are plenty of stimuli for an executive to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this tactic if investors understand where to look (learn more here).

Keeping this in mind, we’re going to take a gander at the key action regarding GlaxoSmithKline plc (ADR) (NYSE:GSK).

How have hedgies been trading GlaxoSmithKline plc (ADR) (NYSE:GSK)?

At the end of the fourth quarter, a total of 16 of the hedge funds we track held long positions in this stock, a change of -6% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.

When looking at the hedgies we track, Ken Fisher’s Fisher Asset Management had the most valuable position in GlaxoSmithKline plc (ADR) (NYSE:GSK), worth close to $467 million, accounting for 1.3% of its total 13F portfolio. On Fisher Asset Management’s heels is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $157 million position; 1.3% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Bill Miller’s Legg Mason Capital Management and Warren Buffett’s Berkshire Hathaway.

Since GlaxoSmithKline plc (ADR) (NYSE:GSK) has witnessed bearish sentiment from the aggregate hedge fund industry, logic holds that there is a sect of hedgies that decided to sell off their full holdings at the end of the year. It’s worth mentioning that Richard Driehaus’s Driehaus Capital dropped the biggest investment of the “upper crust” of funds we watch, totaling about $5 million in stock.. Bart Baum’s fund, Ionic Capital Management, also cut its call options., about $2 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 1 funds at the end of the year.

What have insiders been doing with GlaxoSmithKline plc (ADR) (NYSE:GSK)?

Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last 180-day time period, GlaxoSmithKline plc (ADR) (NYSE:GSK) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results shown by our research, everyday investors must always watch hedge fund and insider trading activity, and GlaxoSmithKline plc (ADR) (NYSE:GSK) applies perfectly to this mantra.

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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!