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Now, according to many of your fellow readers, hedge funds are perceived as delayed, outdated investment tools of a period lost to current times.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
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

The 10 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

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

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!