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Should You Avoid Charter Communications, Inc. (NASDAQ:CHTR)?

Charter Communications, Inc. (NASDAQ:CHTR) was in 37 hedge funds’ portfolio at the end of December. CHTR investors should be aware of a decrease in support from the world’s most elite money managers lately. There were 37 hedge funds in our database with CHTR positions at the end of the previous quarter.

Charter Communications, Inc. (NASDAQ:CHTR)

To the average investor, there are tons of gauges investors can use to monitor Mr. Market. Two of the most useful are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can outpace the broader indices by a significant amount (see just how much).

Just as key, bullish insider trading sentiment is a second way to parse down the marketplace. Just as you’d expect, there are a variety of reasons for an executive to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the valuable potential of this tactic if investors know where to look (learn more here).

With these “truths” under our belt, we’re going to take a gander at the key action regarding Charter Communications, Inc. (NASDAQ:CHTR).

Hedge fund activity in Charter Communications, Inc. (NASDAQ:CHTR)

At year’s end, a total of 37 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.

According to our comprehensive database, Oaktree Capital Management, managed by Howard Marks, holds the largest position in Charter Communications, Inc. (NASDAQ:CHTR). Oaktree Capital Management has a $926 million position in the stock, comprising 17.1% of its 13F portfolio. Coming in second is Lone Pine Capital, managed by Stephen Mandel, which held a $367 million position; 2.8% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include D. E. Shaw’s D E Shaw, James Crichton and Adam Weiss’s Scout Capital Management and Doug Silverman’s Senator Investment Group.

Because Charter Communications, Inc. (NASDAQ:CHTR) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedgies who sold off their full holdings at the end of the year. It’s worth mentioning that Michael Karsch’s Karsch Capital Management said goodbye to the largest position of the 450+ funds we monitor, valued at close to $45 million in stock.. Robert Pohly’s fund, Samlyn Capital, also dumped its stock, about $35 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Charter Communications, Inc. (NASDAQ:CHTR)?

Insider purchases made by high-level executives is best served when the company we’re looking at has experienced transactions within the past half-year. Over the latest six-month time period, Charter Communications, Inc. (NASDAQ:CHTR) has seen 2 unique insiders buying, and 7 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned studies, retail investors should always watch hedge fund and insider trading sentiment, and Charter Communications, Inc. (NASDAQ:CHTR) 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.

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