Here is What Hedge Funds Think About Monster Beverage Corp (NASDAQ:MNST)

Monster Beverage Corp (NASDAQ:MNST) was in 25 hedge funds’ portfolio at the end of the fourth quarter of 2012. MNST has seen a decrease in support from the world’s most elite money managers of late. There were 25 hedge funds in our database with MNST positions at the end of the previous quarter.

Monster Beverage Corp (NASDAQ:MNST)

According to most investors, hedge funds are seen as worthless, outdated financial tools of the past. While there are over 8000 funds in operation at the moment, we choose to focus on the masters of this group, around 450 funds. It is widely believed that this group oversees the majority of all hedge funds’ total asset base, and by watching their highest performing equity investments, we have uncovered a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outpaced 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Equally as important, bullish insider trading activity is a second way to parse down the marketplace. Just as you’d expect, there are plenty of stimuli for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this strategy if piggybackers know what to do (learn more here).

Now, it’s important to take a peek at the key action regarding Monster Beverage Corp (NASDAQ:MNST).

Hedge fund activity in Monster Beverage Corp (NASDAQ:MNST)

In preparation for this year, a total of 25 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably.

Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the biggest position in Monster Beverage Corp (NASDAQ:MNST). Renaissance Technologies has a $100 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $77 million position; 1.9% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Arthur B Cohen and Joseph Healey’s Healthcor Management LP, Michael Lowenstein’s Kensico Capital and Shane Finemore’s Manikay Partners.

Seeing as Monster Beverage Corp (NASDAQ:MNST) has witnessed declining sentiment from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of hedgies who were dropping their full holdings last quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dropped the biggest investment of the “upper crust” of funds we key on, valued at an estimated $84 million in stock.. Patrick McCormack’s fund, Tiger Consumer Management, also cut its stock, about $75 million worth. These bearish behaviors 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 Monster Beverage Corp (NASDAQ:MNST)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Monster Beverage Corp (NASDAQ:MNST) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned tactics, retail investors must always monitor hedge fund and insider trading sentiment, and Monster Beverage Corp (NASDAQ:MNST) 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.

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

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

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

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!