Is Edison International (NYSE:EIX) worth your attention right now? Prominent investors are buying. The number of bullish hedge fund bets advanced by 1 recently.
In the eyes of most shareholders, hedge funds are viewed as slow, old financial vehicles of the past. While there are over 8000 funds with their doors open at the moment, we at Insider Monkey choose to focus on the aristocrats of this club, close to 450 funds. It is estimated that this group has its hands on the lion’s share of the smart money’s total capital, and by monitoring their best stock picks, we have figured out 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 per 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 topped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Just as key, bullish insider trading sentiment is another way to parse down the financial markets. Obviously, there are a variety of stimuli for an upper level exec to downsize shares of his or her company, but just one, very clear reason why they would buy. Various academic studies have demonstrated the impressive potential of this tactic if shareholders know what to do (learn more here).
Now, we’re going to take a gander at the key action surrounding Edison International (NYSE:EIX).
How are hedge funds trading Edison International (NYSE:EIX)?
At year’s end, a total of 18 of the hedge funds we track were bullish in this stock, a change of 6% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes significantly.
According to our comprehensive database, Jean-Marie Eveillard’s First Eagle Investment Management had the most valuable position in Edison International (NYSE:EIX), worth close to $145 million, accounting for 0.5% of its total 13F portfolio. The second largest stake is held by Phill Gross and Robert Atchinson of Adage Capital Management, with a $136 million position; 1.2% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Israel Englander’s Millennium Management, Clint Carlson’s Carlson Capital and Cliff Asness’s AQR Capital Management.
With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Carlson Capital, managed by Clint Carlson, assembled the largest position in Edison International (NYSE:EIX). Carlson Capital had 74 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $3 million position during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Steven Cohen’s SAC Capital Advisors, and David Harding’s Winton Capital Management.
How are insiders trading Edison International (NYSE:EIX)?
Insider purchases made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, Edison International (NYSE:EIX) has seen zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
With the results demonstrated by our strategies, retail investors should always watch hedge fund and insider trading activity, and Edison International (NYSE:EIX) is no exception.
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