This Metric Says You Are Smart to Sell Viacom, Inc. (VIAB)

Page 1 of 2

Is Viacom, Inc. (NASDAQ:VIAB) a sound investment now? The best stock pickers are getting less optimistic. The number of long hedge fund bets went down by 3 in recent months.

Viacom, Inc. (NASDAQ:VIAB)

According to most traders, hedge funds are perceived as worthless, outdated financial tools of yesteryear. While there are greater than 8000 funds trading at the moment, we at Insider Monkey hone in on the upper echelon of this group, close to 450 funds. It is estimated that this group controls the majority of the smart money’s total asset base, and by monitoring their top equity investments, we have formulated a number of investment strategies that have historically outpaced Mr. Market. 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 started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).

Just as key, optimistic insider trading activity is another way to parse down the investments you’re interested in. Just as you’d expect, there are lots of incentives for an upper level exec to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).

Consequently, let’s take a gander at the latest action surrounding Viacom, Inc. (NASDAQ:VIAB).

Hedge fund activity in Viacom, Inc. (NASDAQ:VIAB)

At Q1′s end, a total of 49 of the hedge funds we track were long in this stock, a change of -6% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes considerably.

When looking at the hedgies we track, Donald Yacktman’s Yacktman Asset Management had the largest position in Viacom, Inc. (NASDAQ:VIAB), worth close to $689.5 million, comprising 3.5% of its total 13F portfolio. Sitting at the No. 2 spot is Warren Buffett of Berkshire Hathaway, with a $467.7 million position; 0.6% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Mario Gabelli’s GAMCO Investors, Philippe Laffont’s Coatue Management and David Cohen and Harold Levy’s Iridian Asset Management.

Seeing as Viacom, Inc. (NASDAQ:VIAB) has witnessed a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedgies that elected to cut their entire stakes last quarter. Intriguingly, Jacob Doft’s Highline Capital Management sold off the biggest investment of all the hedgies we watch, totaling an estimated $82 million in call options, and Doug Silverman and Alexander Klabin of Senator Investment Group was right behind this move, as the fund dumped about $44.8 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds last quarter.

What do corporate executives and insiders think about Viacom, Inc. (NASDAQ:VIAB)?

Bullish insider trading is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, Viacom, Inc. (NASDAQ:VIAB) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Viacom, Inc. (NASDAQ:VIAB). These stocks are DISH Network Corp. (NASDAQ:DISH), Liberty Global Inc. (NASDAQ:LBTYA), Discovery Communications Inc. (NASDAQ:DISCA), Time Warner Cable Inc (NYSE:TWC), and DIRECTV (NASDAQ:DTV). This group of stocks belong to the catv systems industry and their market caps resemble VIAB’s market cap.

Page 1 of 2

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 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

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors 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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!