Is Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) Going to Burn These Hedge Funds?

Is Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) a buy here? Hedge funds are becoming more confident. The number of bullish hedge fund bets moved up by 9 recently.

Freeport-McMoRan Copper & Gold Inc-Logo

According to most shareholders, hedge funds are assumed to be slow, old financial tools of yesteryear. While there are greater than 8000 funds trading at the moment, we look at the top tier of this club, about 450 funds. It is estimated that this group controls the lion’s share of the smart money’s total asset base, and by keeping an eye on their best investments, we have come up with a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per 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 outperformed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Just as beneficial, bullish insider trading activity is another way to break down the marketplace. Obviously, there are a number of incentives for an insider to sell shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this strategy if you know what to do (learn more here).

Keeping this in mind, we’re going to take a gander at the key action regarding Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX).

How have hedgies been trading Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)?

At year’s end, a total of 63 of the hedge funds we track held long positions in this stock, a change of 17% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their holdings substantially.

Of the funds we track, Paulson & Co, managed by John Paulson, holds the largest position in Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Paulson & Co has a $308 million position in the stock, comprising 1.9% of its 13F portfolio. Sitting at the No. 2 spot is Sean Cullinan of Point State Capital, with a $120 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Phill Gross and Robert Atchinson’s Adage Capital Management, Leon Cooperman’s Omega Advisors and Tony Chedraoui’s Tyrus Capital.

As aggregate interest increased, specific money managers have been driving this bullishness. Paulson & Co, managed by John Paulson, assembled the biggest position in Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Paulson & Co had 308 million invested in the company at the end of the quarter. Leon Cooperman’s Omega Advisors also initiated a $106 million position during the quarter. The other funds with new positions in the stock are Tony Chedraoui’s Tyrus Capital, Jean-Marie Eveillard’s First Eagle Investment Management, and Keith Meister’s Corvex Capital.

What have insiders been doing with Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)?

Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has experienced transactions within the past half-year. Over the last six-month time period, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) has seen 1 unique insiders buying, and zero insider sales (see the details of insider trades here).

With the returns demonstrated by our tactics, everyday investors should always keep an eye on hedge fund and insider trading activity, and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) applies perfectly to this mantra.

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 44 percentage points in 21 months Learn how!

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!