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Here is What Hedge Funds Think About Quanta Services Inc (NYSE:PWR)

Quanta Services Inc (NYSE:PWR) was in 29 hedge funds’ portfolio at the end of the fourth quarter of 2012. PWR has experienced an increase in hedge fund interest of late. There were 28 hedge funds in our database with PWR holdings at the end of the previous quarter.

Quanta Services Inc (NYSE:PWR)

In the eyes of most shareholders, hedge funds are viewed as underperforming, outdated financial vehicles of the past. While there are over 8000 funds in operation at present, we look at the leaders of this group, about 450 funds. It is widely believed that this group controls the majority of the smart money’s total asset base, and by tracking their highest performing investments, we have unearthed a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually 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 (explore the details and some picks here).

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Consequently, let’s take a glance at the key action surrounding Quanta Services Inc (NYSE:PWR).

How have hedgies been trading Quanta Services Inc (NYSE:PWR)?

Heading into 2013, a total of 29 of the hedge funds we track held long positions in this stock, a change of 4% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially.

According to our comprehensive database, William Harnisch’s Peconic Partners LLC had the biggest position in Quanta Services Inc (NYSE:PWR), worth close to $45 million, comprising 8.9% of its total 13F portfolio. Sitting at the No. 2 spot is Donald Chiboucis of Columbus Circle Investors, with a $33 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Mark Broach’s Manatuck Hill Partners, Joe DiMenna’s ZWEIG DIMENNA PARTNERS and John A. Levin’s Levin Capital Strategies.

Now, key money managers have been driving this bullishness. Columbus Circle Investors, managed by Donald Chiboucis, initiated the most valuable position in Quanta Services Inc (NYSE:PWR). Columbus Circle Investors had 33 million invested in the company at the end of the quarter. James Dondero’s Highland Capital Management also initiated a $16 million position during the quarter. The other funds with new positions in the stock are Andrew Sandler’s Sandler Capital Management, Jim Simons’s Renaissance Technologies, and Robert Emil Zoellner’s Alpine Associates.

What have insiders been doing with Quanta Services Inc (NYSE:PWR)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past six months. Over the last 180-day time frame, Quanta Services Inc (NYSE:PWR) has experienced zero unique insiders purchasing, and 13 insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned strategies, retail investors must always pay attention to hedge fund and insider trading activity, and Quanta Services Inc (NYSE:PWR) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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