Is BHP Billiton Limited (ADR) (BHP) Going to Burn These Hedge Funds?

Page 1 of 2

Is BHP Billiton Limited (ADR) (NYSE:BHP) a buy, sell, or hold? Hedge funds are becoming hopeful. The number of bullish hedge fund positions advanced by 2 in recent months.

According to most investors, hedge funds are perceived as worthless, old financial tools of years past. While there are greater than 8000 funds in operation today, we hone in on the bigwigs of this club, around 450 funds. It is widely believed that this group has its hands on the lion’s share of the smart money’s total capital, and by watching their top picks, we have come up with a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 beaten the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

BHP Billiton Limited (ADR) (NYSE:BHP)Equally as integral, positive insider trading activity is a second way to parse down the marketplace. There are plenty of reasons for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would buy. Many empirical studies have demonstrated the impressive potential of this strategy if investors understand what to do (learn more here).

With these “truths” under our belt, let’s take a gander at the key action regarding BHP Billiton Limited (ADR) (NYSE:BHP).

How have hedgies been trading BHP Billiton Limited (ADR) (NYSE:BHP)?

At Q1′s end, a total of 18 of the hedge funds we track were bullish in this stock, a change of 13% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in BHP Billiton Limited (ADR) (NYSE:BHP). Fisher Asset Management has a $454.7 million position in the stock, comprising 1.2% of its 13F portfolio. Sitting at the No. 2 spot is Scout Capital Management, managed by James Crichton and Adam Weiss, which held a $29.1 million call position; 0.4% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include John Burbank’s Passport Capital, and David Dreman’s Dreman Value Management.

As one would reasonably expect, key money managers were breaking ground themselves. Scout Capital Management, managed by James Crichton and Adam Weiss, initiated the biggest call position in BHP Billiton Limited (ADR) (NYSE:BHP). Scout Capital Management had 29.1 million invested in the company at the end of the quarter. Bart Baum’s Ionic Capital Management also initiated a $3.7 million position during the quarter. The other funds with new positions in the stock are Ray Dalio’s Bridgewater Associates, Israel Englander’s Millennium Management, and David Costen Haley’s HBK Investments.

How are insiders trading BHP Billiton Limited (ADR) (NYSE:BHP)?

Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past half-year. Over the last 180-day time period, BHP Billiton Limited (ADR) (NYSE:BHP) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to BHP Billiton Limited (ADR) (NYSE:BHP). These stocks are Cameco Corporation (USA) (NYSE:CCJ), Teck Resources Ltd (USA) (NYSE:TCK), Rio Tinto plc (ADR) (NYSE:RIO), Vale SA (ADR) (NYSE:VALE), and BHP Billiton plc (ADR) (NYSE:BBL). This group of stocks are the members of the industrial metals & minerals industry and their market caps are closest to BHP’s market cap.

Page 1 of 2

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

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

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

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!