Is Verizon Communications Inc. (NYSE:VZ) Going to Burn These Hedge Funds?

Verizon Communications Inc. (NYSE:VZ) was in 34 hedge funds’ portfolio at the end of the fourth quarter of 2012. VZ has experienced a decrease in hedge fund interest recently. There were 46 hedge funds in our database with VZ positions at the end of the previous quarter.

At the moment, there are tons of methods investors can use to track publicly traded companies. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can beat the S&P 500 by a significant margin (see just how much).

Verizon Communications Inc. (NYSE:VZ)Equally as integral, optimistic insider trading activity is a second way to parse down the investments you’re interested in. There are plenty of incentives for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).

With these “truths” under our belt, we’re going to take a look at the recent action encompassing Verizon Communications Inc. (NYSE:VZ).

Hedge fund activity in Verizon Communications Inc. (NYSE:VZ)

At year’s end, a total of 34 of the hedge funds we track held long positions in this stock, a change of -26% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in Verizon Communications Inc. (NYSE:VZ). Adage Capital Management has a $170 million position in the stock, comprising 0.6% of its 13F portfolio. Coming in second is John A. Levin of Levin Capital Strategies, with a $135 million position; 7.3% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Cliff Asness’s AQR Capital Management, Jim Simons’s Renaissance Technologies and Eric Mindich’s Eton Park Capital.

Judging by the fact that Verizon Communications Inc. (NYSE:VZ) has witnessed falling interest from hedge fund managers, we can see that there was a specific group of hedgies who were dropping their full holdings at the end of the year. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the largest investment of the 450+ funds we watch, valued at close to $36 million in stock., and Bart Baum of Ionic Capital Management was right behind this move, as the fund cut about $29 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 12 funds at the end of the year.

How have insiders been trading Verizon Communications Inc. (NYSE:VZ)?

Insider trading activity, especially when it’s bullish, is best served when the company in focus has seen transactions within the past six months. Over the last 180-day time frame, Verizon Communications Inc. (NYSE:VZ) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

With the results demonstrated by our strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Verizon Communications Inc. (NYSE:VZ) 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

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

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

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!