Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Union Pacific Corporation (UNP) Going to Burn These Hedge Funds?

Page 1 of 2

Union Pacific Corporation (NYSE:UNP) is up a little over 23% in 2013, and the rail company’s operation in the tracking shipment space have been largely responsible for Mr. Market’s bullishness. So, is it time to take profits, or is there more appreciation in store?

In the eyes of many traders, hedge funds are assumed to be useless, outdated investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open currently, this site focuses on the moguls of this club, about 525 funds. Analysts calculate that this group controls the majority of the smart money’s total assets, and by keeping an eye on their best picks, we’ve unsheathed a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 33 percentage points in 11 months (find a sample of our picks).

Just as useful, positive insider trading sentiment is another way to look at the stock market universe. Just as you’d expect, there are lots of stimuli for an upper level exec to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).

Thus, we’re going to examine the newest info surrounding Union Pacific Corporation (NYSE:UNP).

What does the smart money think about Union Pacific Corporation (NYSE:UNP)?

At Q2’s end, a total of 42 of the hedge funds we track were long in this stock, a change of -2% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings substantially.

Union Pacific Corporation (NYSE:UNP)According to our 13F database, Harris Associates, managed by Natixis Global Asset Management, holds the largest position in Union Pacific Corporation (NYSE:UNP). Harris Associates has a $182.5 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is Donald Chiboucis of Columbus Circle Investors, with a $161.6 million position; 1.3% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Alan Fournier’s Pennant Capital Management, D. E. Shaw’s D E Shaw and Phill Gross and Robert Atchinson’s Adage Capital Management.

As Union Pacific Corporation (NYSE:UNP) has experienced declining interest from upper-tier hedge fund managers, it’s easy to see that there exists a select few hedgies that elected to cut their entire stakes last quarter. Interestingly, Jim Simons’s Renaissance Technologies sold off the largest stake of all the hedgies we watch, totaling an estimated $41.7 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also dumped its stock, about $33 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 1 funds last quarter.

What have insiders been doing with Union Pacific Corporation (NYSE:UNP)?

Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time frame, Union Pacific Corporation (NYSE:UNP) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Union Pacific Corporation (NYSE:UNP). These stocks are Kansas City Southern (NYSE:KSU), Canadian Pacific Railway Limited (USA) (NYSE:CP), CSX Corporation (NYSE:CSX), Norfolk Southern Corp. (NYSE:NSC), and Canadian National Railway (USA) (NYSE:CNI). This group of stocks belong to the railroads industry and their market caps resemble UNP’s market cap.

Page 1 of 2
Loading Comments...