Loral Space & Communications Ltd. (NASDAQ:LORL) was in 22 hedge funds' portfolio at the end of the fourth quarter of 2012. LORL has experienced an increase in hedge fund sentiment recently. There were 17 hedge funds in our database with LORL positions at the end of the previous quarter.
To the average investor, there are a multitude of indicators shareholders can use to watch publicly traded companies. A duo of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outpace the S&P 500 by a healthy margin (see just how much).
Equally as key, positive insider trading sentiment is another way to break down the stock market universe. As the old adage goes: there are plenty of incentives for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this strategy if investors know what to do (learn more here).
Consequently, it's important to take a glance at the key action encompassing Loral Space & Communications Ltd. (NASDAQ:LORL).
Heading into 2013, a total of 22 of the hedge funds we track were long in this stock, a change of 29% from one quarter earlier. With hedgies' capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings considerably.
According to our comprehensive database, Christopher Pucillo's Solus Alternative Asset Management had the biggest position in Loral Space & Communications Ltd. (NASDAQ:LORL), worth close to $87 million, accounting for 32.2% of its total 13F portfolio. Coming in second is Amy Minella of Cardinal Capital, with a $49 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Spencer M. Waxman's Shannon River Fund Management, and Leon Cooperman's Omega Advisors.
Consequently, key hedge funds were leading the bulls' herd. Highland Capital Management, managed by James Dondero, assembled the biggest call position in Loral Space & Communications Ltd. (NASDAQ:LORL). Highland Capital Management had 34 million invested in the company at the end of the quarter. Sean Cullinan's Point State Capital also made a $4 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin's Citadel Investment Group, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital, and Joel Greenblatt's Gotham Asset Management.
Insider trading activity, especially when it's bullish, is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest half-year time period, Loral Space & Communications Ltd. (NASDAQ:LORL) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results exhibited by our time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Loral Space & Communications Ltd. (NASDAQ:LORL) is no exception.
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