This Metric Says You Are Smart to Sell Precision Castparts Corp. (NYSE:PCP)

Is Precision Castparts Corp. (NYSE:PCP) going to take off soon? Money managers are selling. The number of bullish hedge fund bets went down by 2 lately.

In today’s marketplace, there are tons of gauges market participants can use to track their holdings. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can outpace the broader indices by a healthy amount (see just how much).

Precision Castparts Corp. (NYSE:PCP)

Equally as integral, positive insider trading sentiment is a second way to parse down the stock market universe. As the old adage goes: there are lots of motivations for an insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this strategy if investors know what to do (learn more here).

Keeping this in mind, we’re going to take a glance at the recent action encompassing Precision Castparts Corp. (NYSE:PCP).

What does the smart money think about Precision Castparts Corp. (NYSE:PCP)?

At the end of the fourth quarter, a total of 25 of the hedge funds we track were long in this stock, a change of -7% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Warren Buffett’s Berkshire Hathaway had the biggest position in Precision Castparts Corp. (NYSE:PCP), worth close to $375 million billion, comprising 0.5% of its total 13F portfolio. Coming in second is Mario Gabelli of GAMCO Investors, with a $177 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Ken Griffin’s Citadel Investment Group, Phill Gross and Robert Atchinson’s Adage Capital Management and Christopher MedlockáJames’s Partner Fund Management.

Since Precision Castparts Corp. (NYSE:PCP) has faced falling interest from the smart money, we can see that there exists a select few funds that elected to cut their positions entirely in Q4. It’s worth mentioning that Jim Simons’s Renaissance Technologies sold off the largest investment of all the hedgies we monitor, valued at about $84 million in stock., and Clint Carlson of Carlson Capital was right behind this move, as the fund sold off about $4 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds in Q4.

Insider trading activity in Precision Castparts Corp. (NYSE:PCP)

Insider purchases made by high-level executives is most useful when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, Precision Castparts Corp. (NYSE:PCP) has seen zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned tactics, retail investors should always keep an eye on hedge fund and insider trading activity, and Precision Castparts Corp. (NYSE:PCP) 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.

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.
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

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

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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!