Someone’s Selling Pfizer Inc. (PFE) Shares, Should You?

Page 1 of 2

Pfizer Inc. (NYSE:PFE) is up 13.5% in 2013, but one sect of the market has sold off some shares of late. Who is it?

Now, according to many traders, hedge funds are seen as delayed, outdated investment tools of an era lost to time. Although there are more than 8,000 hedge funds trading in present day, this site focuses on the moguls of this club, about 525 funds. It is widely held that this group oversees most of the smart money’s total capital, and by keeping an eye on their highest performing stock picks, we’ve unearthed a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Just as crucial, optimistic insider trading activity is another way to look at the marketplace. As the old adage goes: there are lots of motivations for a bullish insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the market-beating potential of this tactic if “monkeys” understand what to do (learn more here).

What’s more, it’s important to study the latest info surrounding Pfizer Inc. (NYSE:PFE).

What does the smart money think about Pfizer Inc. (NYSE:PFE)?

In preparation for the third quarter, a total of 75 of the hedge funds we track were bullish in this stock, a change of -7% from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were increasing their stakes meaningfully.

Pfizer Inc. (NYSE:PFE)According to our 13F database, Fisher Asset Management, managed by Ken Fisher, holds the largest position in Pfizer Inc. (NYSE:PFE). Fisher Asset Management has a $861 million position in the stock, comprising 2.2% of its 13F portfolio. On Fisher Asset Management’s heels is Pentwater Capital Management, managed by Matthew Halbower, which held a $765.1 million position; 16.2% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include D. E. Shaw’s D E Shaw, Cliff Asness’s AQR Capital Management and Christopher Medlock James’s Partner Fund Management.

Since Pfizer Inc. (NYSE:PFE) has faced a fall in interest from the entirety of the hedge funds we track, logic holds that there were a few hedgies who were dropping their positions entirely heading into Q2. Interestingly, Rob Citrone’s Discovery Capital Management sold off the biggest investment of the 450+ funds we key on, totaling about $508.1 million in stock. Stanley Druckenmiller’s fund, Duquesne Capital, also said goodbye to its stock, about $98.7 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds heading into Q2.

How are insiders trading Pfizer Inc. (NYSE:PFE)?

Bullish insider trading is particularly usable when the company in question has experienced transactions within the past six months. Over the latest half-year time period, Pfizer Inc. (NYSE:PFE) has experienced 1 unique insiders purchasing, and 13 insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Pfizer Inc. (NYSE:PFE). These stocks are GlaxoSmithKline plc (ADR) (NYSE:GSK), Merck & Co., Inc. (NYSE:MRK), Sanofi SA (ADR) (NYSE:SNY), Johnson & Johnson (NYSE:JNJ), and Novartis AG (ADR) (NYSE:NVS). All of these stocks are in the drug manufacturers – major industry and their market caps resemble PFE’s market cap.

Page 1 of 2
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

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

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

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!