Praxair, Inc. (NYSE:PX): Are Hedge Funds Right About This Stock?

Praxair, Inc. (NYSE:PX) was in 22 hedge funds’ portfolio at the end of the fourth quarter of 2012. PX investors should be aware of a decrease in enthusiasm from smart money in recent months. There were 25 hedge funds in our database with PX holdings at the end of the previous quarter.

According to most shareholders, hedge funds are assumed to be unimportant, old financial vehicles of the past. While there are greater than 8000 funds trading at the moment, we look at the bigwigs of this club, close to 450 funds. It is widely believed that this group oversees the majority of the smart money’s total asset base, and by paying attention to their highest performing picks, we have 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 per year 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 outclassed the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

EAGLE CAPITAL MANAGEMENTEqually as key, optimistic insider trading activity is a second way to break down the marketplace. Obviously, there are a number of incentives for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this strategy if piggybackers know what to do (learn more here).

Now, we’re going to take a look at the latest action surrounding Praxair, Inc. (NYSE:PX).

How are hedge funds trading Praxair, Inc. (NYSE:PX)?

Heading into 2013, a total of 22 of the hedge funds we track held long positions in this stock, a change of -12% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes meaningfully.

Of the funds we track, Eagle Capital Management, managed by Boykin Curry, holds the most valuable position in Praxair, Inc. (NYSE:PX). Eagle Capital Management has a $555 million position in the stock, comprising 3.9% of its 13F portfolio. On Eagle Capital Management’s heels is Ken Griffin of Citadel Investment Group, with a $51 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Edgar Wachenheim’s Greenhaven Associates, Bernard Horn’s Polaris Capital Management and Phill Gross and Robert Atchinson’s Adage Capital Management.

Since Praxair, Inc. (NYSE:PX) has experienced declining sentiment from hedge fund managers, it’s easy to see that there was a specific group of funds that slashed their positions entirely at the end of the year. Interestingly, D. E. Shaw’s D E Shaw said goodbye to the largest position of the 450+ funds we key on, valued at about $4 million in call options, and Richard Driehaus of Driehaus Capital was right behind this move, as the fund cut about $2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds at the end of the year.

Insider trading activity in Praxair, Inc. (NYSE:PX)

Bullish insider trading is at its handiest when the company in focus has seen transactions within the past 180 days. Over the last six-month time period, Praxair, Inc. (NYSE:PX) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Praxair, Inc. (NYSE:PX) applies perfectly to this mantra.

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 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

Most Expensive Rum Brands 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!