Orbitz Worldwide, Inc. (NYSE:OWW) was in 8 hedge funds’ portfolio at the end of the fourth quarter of 2012. OWW shareholders have witnessed an increase in hedge fund sentiment lately. There were 6 hedge funds in our database with OWW positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are tons of metrics investors can use to track Mr. Market. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outperform the broader indices by a solid amount (see just how much).
Just as important, bullish insider trading activity is another way to break down the marketplace. There are many reasons for an executive to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).
Now, it’s important to take a peek at the recent action surrounding Orbitz Worldwide, Inc. (NYSE:OWW).
What does the smart money think about Orbitz Worldwide, Inc. (NYSE:OWW)?
Heading into 2013, a total of 8 of the hedge funds we track were bullish in this stock, a change of 33% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly.
According to our comprehensive database, Paul Reeder and Edward Shapiro’s PAR Capital Management had the biggest position in Orbitz Worldwide, Inc. (NYSE:OWW), worth close to $67 million, comprising 2.9% of its total 13F portfolio. Sitting at the No. 2 spot is D. E. Shaw of D E Shaw, with a $4 million position; 0% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Joel Greenblatt’s Gotham Asset Management, Jim Simons’s Renaissance Technologies and Ken Gray and Steve Walsh’s Bryn Mawr Capital.
As one would reasonably expect, key hedge funds have been driving this bullishness. Millennium Management, managed by Israel Englander, assembled the biggest position in Orbitz Worldwide, Inc. (NYSE:OWW). Millennium Management had 0 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0 million investment in the stock during the quarter. The only other fund with a brand new OWW position is Ken Griffin’s Citadel Investment Group.
What have insiders been doing with Orbitz Worldwide, Inc. (NYSE:OWW)?
Insider trading activity, especially when it’s bullish, 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, Orbitz Worldwide, Inc. (NYSE:OWW) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Orbitz Worldwide, Inc. (NYSE:OWW). These stocks are Carnival plc (ADR) (NYSE:CUK), Six Flags Entertainment Corp (NYSE:SIX), Premier Exhibitions, Inc. (NASDAQ:PRXI), Cedar Fair, L.P. (NYSE:FUN), and MakeMyTrip Limited (NASDAQ:MMYT). This group of stocks are in the general entertainment industry and their market caps resemble OWW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Carnival plc (ADR) (NYSE:CUK) | 4 | 0 | 12 |
| Six Flags Entertainment Corp (NYSE:SIX) | 30 | 1 | 5 |
| Premier Exhibitions, Inc. (NASDAQ:PRXI) | 1 | 0 | 0 |
| Cedar Fair, L.P. (NYSE:FUN) | 10 | 2 | 0 |
| MakeMyTrip Limited (NASDAQ:MMYT) | 5 | 0 | 0 |
With the returns shown by Insider Monkey’s strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Orbitz Worldwide, Inc. (NYSE:OWW) shareholders fit into this picture quite nicely.
