Here is What Hedge Funds Think About Tyco International Ltd. (NYSE:TYC)

Tyco International Ltd. (NYSE:TYC) investors should be aware of a decrease in support from the world’s most elite money managers of late.

To most market participants, hedge funds are seen as worthless, old financial vehicles of the past. While there are more than 8000 funds with their doors open at the moment, we hone in on the elite of this club, close to 450 funds. It is estimated that this group controls the lion’s share of the hedge fund industry’s total capital, and by watching their highest performing stock picks, we have identified a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to 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 all of our picks from August).

Equally as beneficial, bullish insider trading sentiment is another way to break down the world of equities. As the old adage goes: there are plenty of incentives for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this strategy if you know what to do (learn more here).

Keeping this in mind, let’s take a gander at the recent action regarding Tyco International Ltd. (NYSE:TYC).

Hedge fund activity in Tyco International Ltd. (NYSE:TYC)

At year’s end, a total of 40 of the hedge funds we track were bullish in this stock, a change of -31% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully.

When looking at the hedgies we track, Iridian Asset Management, managed by David Cohen and Harold Levy, holds the largest position in Tyco International Ltd. (NYSE:TYC). Iridian Asset Management has a $207 million billion position in the stock, comprising 3.4% of its 13F portfolio. Coming in second is Ken Griffin of Citadel Investment Group, with a $178 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Daniel S. Och’s OZ Management, Jean-Marie Eveillard’s First Eagle Investment Management and Phill Gross and Robert Atchinson’s Adage Capital Management.

Judging by the fact that Tyco International Ltd. (NYSE:TYC) has experienced bearish sentiment from hedge fund managers, it’s safe to say that there were a few hedge funds that slashed their entire stakes at the end of the year. At the top of the heap, Kenneth Mario Garschina’s Mason Capital Management dumped the largest stake of the 450+ funds we monitor, comprising an estimated $184 million in stock.. Cliff Asness’s fund, AQR Capital Management, also dropped its stock, about $163 million worth. These moves are important to note, as total hedge fund interest was cut by 18 funds at the end of the year.

What do corporate executives and insiders think about Tyco International Ltd. (NYSE:TYC)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time period, Tyco International Ltd. (NYSE:TYC) has seen 1 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

With the returns demonstrated by our studies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Tyco International Ltd. (NYSE:TYC) shareholders fit into this picture quite nicely.

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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!