Lexmark International Inc (NYSE:LXK): Are Hedge Funds Right About This Stock?

Lexmark International Inc (NYSE:LXK) was in 18 hedge funds’ portfolio at the end of December. LXK has experienced a decrease in activity from the world’s largest hedge funds lately. There were 19 hedge funds in our database with LXK holdings at the end of the previous quarter.

Lexmark International Inc (NYSE:LXK)

In today’s marketplace, there are dozens of metrics market participants can use to monitor stocks. A pair of the most underrated 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 elite investment managers can outpace the broader indices by a significant amount (see just how much).

Equally as beneficial, bullish insider trading activity is a second way to break down the marketplace. Obviously, there are plenty of stimuli for an insider to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this strategy if investors know what to do (learn more here).

Keeping this in mind, it’s important to take a gander at the latest action regarding Lexmark International Inc (NYSE:LXK).

How have hedgies been trading Lexmark International Inc (NYSE:LXK)?

In preparation for this year, a total of 18 of the hedge funds we track were bullish in this stock, a change of -5% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, David Cohen and Harold Levy’s Iridian Asset Management had the most valuable position in Lexmark International Inc (NYSE:LXK), worth close to $80 million, accounting for 1.3% of its total 13F portfolio. The second largest stake is held by First Eagle Investment Management, managed by Jean-Marie Eveillard, which held a $20 million position; 0.4% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Martin Whitman’s Third Avenue Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Cliff Asness’s AQR Capital Management.

Because Lexmark International Inc (NYSE:LXK) has witnessed falling interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of money managers that elected to cut their positions entirely last quarter. Intriguingly, David Harding’s Winton Capital Management said goodbye to the biggest stake of the 450+ funds we key on, valued at about $7 million in stock.. Dmitry Balyasny’s fund, Balyasny Asset Management, also sold off its stock, about $6 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds last quarter.

What have insiders been doing with Lexmark International Inc (NYSE:LXK)?

Insider buying is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest half-year time frame, Lexmark International Inc (NYSE:LXK) has experienced 1 unique insiders buying, and 8 insider sales (see the details of insider trades here).

With the results shown by Insider Monkey’s tactics, retail investors must always pay attention to hedge fund and insider trading activity, and Lexmark International Inc (NYSE:LXK) is no exception.

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.

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

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

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

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!