Is EXCO Resources Inc (NYSE:XCO) Going to Burn These Hedge Funds?

Is EXCO Resources Inc (NYSE:XCO) a buy right now? The best stock pickers are becoming hopeful. The number of bullish hedge fund positions moved up by 1 recently.

EXCO Resources Inc (NYSE:XCO)

At the moment, there are a multitude of indicators market participants can use to watch their holdings. Some of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a superb margin (see just how much).

Equally as integral, positive insider trading sentiment is a second way to break down the financial markets. As the old adage goes: there are a number of reasons for an executive to downsize shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this strategy if investors know what to do (learn more here).

Keeping this in mind, we’re going to take a look at the latest action regarding EXCO Resources Inc (NYSE:XCO).

How are hedge funds trading EXCO Resources Inc (NYSE:XCO)?

At the end of the fourth quarter, a total of 19 of the hedge funds we track held long positions in this stock, a change of 6% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes meaningfully.

Of the funds we track, Howard Marks’s Oaktree Capital Management had the most valuable position in EXCO Resources Inc (NYSE:XCO), worth close to $249 million, comprising 4.6% of its total 13F portfolio. The second largest stake is held by Invesco Private Capital (WL Ross), managed by Wilbur Ross, which held a $213 million position; the fund has 19.9% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Prem Watsa’s Fairfax Financial Holdings, Phil Falcone’s Harbinger and Charles Clough’s Clough Capital Partners.

With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Clough Capital Partners, managed by Charles Clough, established the most outsized position in EXCO Resources Inc (NYSE:XCO). Clough Capital Partners had 9 million invested in the company at the end of the quarter. Mark Kingdon’s Kingdon Capital also initiated a $2 million position during the quarter. The following funds were also among the new XCO investors: John Fichthorn’s Dialectic Capital Management, Richard C. Patton’s Courage Capital, and Glenn Russell Dubin’s Highbridge Capital Management.

What have insiders been doing with EXCO Resources Inc (NYSE:XCO)?

Bullish insider trading is best served when the company we’re looking at has seen transactions within the past six months. Over the last half-year time period, EXCO Resources Inc (NYSE:XCO) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results shown by our studies, everyday investors should always keep an eye on hedge fund and insider trading activity, and EXCO Resources Inc (NYSE:XCO) is an important part of this process.

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

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

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 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!