Resolute Forest Products Inc (NYSE:RFP): Insiders Are Buying, Should You?

Is Resolute Forest Products Inc (NYSE:RFP) the right investment to pursue these days? Investors who are in the know are turning bullish. The number of long hedge fund bets moved up by 4 in recent months.

Resolute Forest Products Inc (NYSE:RFP)

In the 21st century investor’s toolkit, there are plenty of methods market participants can use to monitor publicly traded companies. A couple of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce the S&P 500 by a significant margin (see just how much).

Equally as beneficial, bullish insider trading activity is another way to break down the financial markets. Obviously, there are a variety of motivations for an upper level exec to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this strategy if piggybackers know where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the key action encompassing Resolute Forest Products Inc (NYSE:RFP).

What does the smart money think about Resolute Forest Products Inc (NYSE:RFP)?

At year’s end, a total of 21 of the hedge funds we track were bullish in this stock, a change of 24% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially.

According to our comprehensive database, Prem Watsa’s Fairfax Financial Holdings had the most valuable position in Resolute Forest Products Inc (NYSE:RFP), worth close to $328 million, accounting for 13.1% of its total 13F portfolio. On Fairfax Financial Holdings’s heels is Steelhead Partners, managed by Michael Johnston, which held a $173 million position; the fund has 12.8% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include John Paulson’s Paulson & Co, Francis Chou’s Chou Associates Management and Jon Bauer’s Contrarian Capital.

With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Owl Creek Asset Management, managed by Jeffrey Altman, initiated the most valuable position in Resolute Forest Products Inc (NYSE:RFP). Owl Creek Asset Management had 3 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also initiated a $1 million position during the quarter. The other funds with brand new RFP positions are Thomas Lenox Kempner’s Davidson Kempner, Gifford Combs’s Dalton Investments, and Tom Gayner’s Markel Gayner Asset Management.

What have insiders been doing with Resolute Forest Products Inc (NYSE:RFP)?

Bullish insider trading is best served when the company in question has experienced transactions within the past six months. Over the last half-year time frame, Resolute Forest Products Inc (NYSE:RFP) has experienced 2 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s studies, retail investors should always keep an eye on hedge fund and insider trading activity, and Resolute Forest Products Inc (NYSE:RFP) shareholders fit into this picture quite nicely.

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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!