Is WellPoint, Inc. (WLP) Going to Burn These Hedge Funds?

Page 1 of 2

Is WellPoint, Inc. (NYSE:WLP) a good buy?

Now, according to many of your fellow readers, hedge funds are perceived as delayed, outdated investment tools of a period lost to current times. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site looks at the upper echelon of this group, close to 525 funds. It is widely held that this group oversees the majority of the hedge fund industry’s total capital, and by monitoring their highest performing investments, we’ve figured out a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 trumped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Just as crucial, positive insider trading sentiment is another way to look at the world of equities. There are lots of stimuli for an upper level exec to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this method if you understand what to do (learn more here).

Now that that’s out of the way, let’s analyze the newest info surrounding WellPoint, Inc. (NYSE:WLP).

What have hedge funds been doing with WellPoint, Inc. (NYSE:WLP)?

At the end of the second quarter, a total of 50 of the hedge funds we track were bullish in this stock, a change of 14% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings substantially.

WellPoint, Inc. (NYSE:WLP)According to our 13F database, Orbis Investment Management, managed by William B. Gray, holds the most valuable position in WellPoint, Inc. (NYSE:WLP). Orbis Investment Management has a $638.4 million position in the stock, comprising 5.1% of its 13F portfolio. Coming in second is First Eagle Investment Management, managed by Matt McLennan, which held a $513.3 million position; 1.6% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Donald Yacktman’s Yacktman Asset Management, Paul Reeder and Edward Shapiro’s PAR Capital Management and Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC.

As industrywide interest increased, certain bigger names were leading the bulls’ herd. Orbis Investment Management, managed by William B. Gray, created the most outsized position in WellPoint, Inc. (NYSE:WLP). Orbis Investment Management had 638.4 million invested in the company at the end of the quarter. Matt McLennan’s First Eagle Investment Management also initiated a $513.3 million position during the quarter. The other funds with brand new WLP positions are Donald Yacktman’s Yacktman Asset Management, Paul ReederáandáEdward Shapiro’s PAR Capital Management, and Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC.

How have insiders been trading WellPoint, Inc. (NYSE:WLP)?

Insider buying made by high-level executives is at its handiest when the company in question has seen transactions within the past six months. Over the latest 180-day time period, WellPoint, Inc. (NYSE:WLP) has seen zero unique insiders purchasing, and 11 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 WellPoint, Inc. (NYSE:WLP). These stocks are UnitedHealth Group Inc. (NYSE:UNH), Express Scripts Holding Company (NASDAQ:ESRX), Humana Inc (NYSE:HUM), Aetna Inc. (NYSE:AET), and CIGNA Corporation (NYSE:CI). This group of stocks are the members of the health care plans industry and their market caps are similar to WLP’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!