Should You Buy Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL)?

Is Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) the right investment to pursue these days? Hedge funds are becoming more confident. The number of long hedge fund bets went up by 1 recently.

Melco Crown Entertainment (MPEL), Brian Kelly Asian Century Quest

If you’d ask most traders, hedge funds are assumed to be underperforming, outdated financial vehicles of the past. While there are more than 8000 funds with their doors open at the moment, we look at the upper echelon of this group, around 450 funds. Most estimates calculate that this group has its hands on the majority of the smart money’s total capital, and by keeping an eye on their top stock picks, we have uncovered a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Equally as key, optimistic insider trading sentiment is a second way to break down the marketplace. There are a variety of incentives for an executive to drop shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the impressive potential of this strategy if you understand where to look (learn more here).

Now, let’s take a peek at the latest action surrounding Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL).

How have hedgies been trading Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL)?

At year’s end, a total of 37 of the hedge funds we track were long in this stock, a change of 3% from the third quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.

When looking at the hedgies we track, OZ Management, managed by Daniel S. Och, holds the biggest position in Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL). OZ Management has a $155 million position in the stock, comprising 0.6% of its 13F portfolio. On OZ Management’s heels is Luxor Capital Group, managed by Christian Leone, which held a $142 million position; the fund has 5% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include J Kevin Kenny Jr’s Emerging Sovereign Group, Brian Kelly’s Asian Century Quest and Rob Citrone’s Discovery Capital Management.

As industrywide interest jumped, key money managers have jumped into Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) headfirst. Emerging Sovereign Group, managed by J Kevin Kenny Jr, created the biggest position in Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL). Emerging Sovereign Group had 74 million invested in the company at the end of the quarter. John Thaler’s JAT Capital Management also made a $37 million investment in the stock during the quarter. The following funds were also among the new MPEL investors: Jim Simons’s Renaissance Technologies, Donald Chiboucis’s Columbus Circle Investors, and Malcolm Fairbairn’s Ascend Capital.

What do corporate executives and insiders think about Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL)?

Insider trading activity, especially when it’s bullish, is best served when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns exhibited by our strategies, retail investors should always monitor hedge fund and insider trading sentiment, and Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) 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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies 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!