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Is Texas Instruments Incorporated (NASDAQ:TXN) Going to Burn These Hedge Funds?

Texas Instruments Incorporated (NASDAQ:TXN) was in 23 hedge funds’ portfolio at the end of the fourth quarter of 2012. TXN has seen an increase in enthusiasm from smart money of late. There were 18 hedge funds in our database with TXN positions at the end of the previous quarter.

Texas Instruments logo

At the moment, there are plenty of methods investors can use to track the equity markets. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform their index-focused peers by a healthy amount (see just how much).

Equally as beneficial, bullish insider trading activity is a second way to parse down the marketplace. Obviously, there are lots of incentives for an executive to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this method if piggybackers understand where to look (learn more here).

Consequently, we’re going to take a glance at the latest action surrounding Texas Instruments Incorporated (NASDAQ:TXN).

What does the smart money think about Texas Instruments Incorporated (NASDAQ:TXN)?

At year’s end, a total of 23 of the hedge funds we track were long in this stock, a change of 28% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably.

According to our comprehensive database, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the largest position in Texas Instruments Incorporated (NASDAQ:TXN). First Eagle Investment Management has a $376 million position in the stock, comprising 1.3% of its 13F portfolio. The second largest stake is held by Charles de Vaulx of International Value Advisers, with a $114 million position; the fund has 2.5% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Wallace Weitz’s Wallace R. Weitz & Co., Bill Miller’s Legg Mason Capital Management and D. E. Shaw’s D E Shaw.

As aggregate interest increased, key money managers were breaking ground themselves. Jabre Capital Partners, managed by Philippe Jabre, initiated the biggest call position in Texas Instruments Incorporated (NASDAQ:TXN). Jabre Capital Partners had 17 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $10 million position during the quarter. The other funds with new positions in the stock are Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Neil Chriss’s Hutchin Hill Capital, and Israel Englander’s Millennium Management.

What do corporate executives and insiders think about Texas Instruments Incorporated (NASDAQ:TXN)?

Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the latest 180-day time frame, Texas Instruments Incorporated (NASDAQ:TXN) has seen zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s research, everyday investors should always watch hedge fund and insider trading sentiment, and Texas Instruments Incorporated (NASDAQ:TXN) 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.

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