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What Have Orbitz Worldwide, Inc. (OWW)’s Smartest Investors Done?

Orbitz Worldwide, Inc. (NYSE:OWW) was in 12 hedge funds’ portfolio at the end of March. OWW investors should pay attention to an increase in activity from the world’s largest hedge funds recently. There were 9 hedge funds in our database with OWW positions at the end of the previous quarter.

According to most shareholders, hedge funds are viewed as unimportant, outdated financial tools of years past. While there are more than 8000 funds in operation at present, we look at the masters of this club, close to 450 funds. It is estimated that this group oversees the lion’s share of all hedge funds’ total capital, and by monitoring their best picks, we have figured out a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year 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 topped the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as beneficial, bullish insider trading activity is another way to parse down the financial markets. Obviously, there are a variety of reasons for a bullish insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the impressive potential of this method if you know what to do (learn more here).

With all of this in mind, it’s important to take a gander at the key action surrounding Orbitz Worldwide, Inc. (NYSE:OWW).

What does the smart money think about Orbitz Worldwide, Inc. (NYSE:OWW)?

At Q1’s end, a total of 12 of the hedge funds we track held long positions in this stock, a change of 33% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully.

Orbitz Worldwide, Inc. (NYSE:OWW)Of the funds we track, PAR Capital Management, managed by Paul Reeder and Edward Shapiro, holds the largest position in Orbitz Worldwide, Inc. (NYSE:OWW). PAR Capital Management has a $140.5 million position in the stock, comprising 4.4% of its 13F portfolio. The second largest stake is held by D E Shaw, managed by D. E. Shaw, which held a $9.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Joel Greenblatt’s Gotham Asset Management, Israel Englander’s Millennium Management and Brad Gerstner’s Altimeter Capital Management.

As aggregate interest increased, specific money managers were leading the bulls’ herd. Algert Coldiron Investors, managed by Peter Algert and Kevin Coldiron, initiated the largest position in Orbitz Worldwide, Inc. (NYSE:OWW). Algert Coldiron Investors had 0.4 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $0.3 million investment in the stock during the quarter. The other funds with brand new OWW positions are Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Jeffrey Vinik’s Vinik Asset Management, and Matthew Hulsizer’s PEAK6 Capital Management.

What do corporate executives and insiders think about Orbitz Worldwide, Inc. (NYSE:OWW)?

Insider buying is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time frame, Orbitz Worldwide, Inc. (NYSE:OWW) has experienced zero unique insiders purchasing, and 12 insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s tactics, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Orbitz Worldwide, Inc. (NYSE:OWW) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

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