Insiders Have Bought American International Group Inc (AIG) and More of Billionaire Dan Loeb’s Picks

Page 1 of 2

Studies show that stocks bought by insiders tend to narrowly outperform the market (read our analysis of studies on insider trading) which we’d attribute to insiders tending to buy when they are confident in the company’s prospects; at other times, it makes more sense for them to diversify away from the company. We also track quarterly 13F filings from hedge funds as part of our work researching investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year). It’s also possible to go through filings from individual managers such as billionaire Dan Loeb of Third Point and look for stocks which company insiders have bought recently as a potential source for investment ideas. Here is our quick take on Third Point’s five largest holdings as of the end of March which at least one insider has bought in the last three months (or see the full list of the fund’s stock picks).

While Loeb sold some of his shares of American International Group Inc (NYSE:AIG), it was still one of his three largest holdings by market value. Our database shows that one of the company’s Board members bought 10,000 shares in May at an average price of $45.20 per share. While American International Group Inc (NYSE:AIG) has done well year to date, we think that is still maintains some value prospects given its discount to the book value of its equity (the P/B ratio is 0.8). The company’s reputation is still poor enough that we wouldn’t expect it to trade at book, but we’d still expect this gap to narrow a bit over time. American International Group Inc (NYSE:AIG) had been the most popular stock among hedge funds in the fourth quarter of 2012, but fell to #3 last quarter (find more of hedge funds’ favorite stocks).

Dan Loeb Third PointAn insider was buying shares of Murphy Oil Corporation (NYSE:MUR) in May; Third Point’s most recent 13F revealed a position of 2.5 million shares. Murphy Oil Corporation (NYSE:MUR) is a $12 billion market gap oil and gas company, which Loeb is pushing to split its upstream and downstream operation. Spinouts can be potential sources of value creation, as management of the new company can better focus on operations without having to worry about the needs of the larger organization. Learn more about investing in spinouts. As it currently stands, Murphy Oil Corporation (NYSE:MUR) trades at 12 times trailing earnings so it does not require much in improved efficiencies to make it a good value at the current price.

Page 1 of 2
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 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

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!