International Paper Company (NYSE:IP) is a steady member of many investors' portfolios. So what are its richest investors doing to make piggybackers so bullish?
In the eyes of many market players, hedge funds are assumed to be delayed, outdated financial tools of an era lost to time. Although there are over 8,000 hedge funds trading today, this site aim at the leaders of this group, close to 525 funds. Analysts calculate that this group has its hands on the lion's share of the smart money's total capital, and by watching their best equity investments, we've identified a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per 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 outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as key, optimistic insider trading activity is a second way to look at the financial markets. As the old adage goes: there are many reasons for an executive to drop shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if piggybackers understand what to do (learn more here).
What's more, we're going to discuss the latest info about International Paper Company (NYSE:IP).
How have hedgies been trading International Paper Company (NYSE:IP)?
Heading into Q3, a total of 50 of the hedge funds we track were long in this stock, a change of 6% from one quarter earlier. With hedge funds' sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes significantly.
Out of the hedge funds we follow, Third Point, managed by Dan Loeb, holds the largest position in International Paper Company (NYSE:IP). Third Point has a $199.4 million position in the stock, comprising 4.5% of its 13F portfolio. On Third Point's heels is Senator Investment Group, managed by Doug Silverman and Alexander Klabin, which held a $181.7 million position; 2.8% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include D. E. Shaw's D E Shaw, Sean Cullinan's Point State Capital and Israel Englander's Millennium Management.
As industrywide interest increased, certain bigger names were breaking ground themselves. Third Point, managed by Dan Loeb, created the most outsized position in International Paper Company (NYSE:IP). Third Point had 199.4 million invested in the company at the end of the quarter. Doug Silverman and Alexander Klabin's Senator Investment Group also made a $181.7 million investment in the stock during the quarter. The other funds with brand new IP positions are D. E. Shaw's D E Shaw, Sean Cullinan's Point State Capital, and Israel Englander's Millennium Management.
Insider buying is most useful when the company we're looking at has experienced transactions within the past 180 days. Over the last 180-day time period, International Paper Company (NYSE:IP) has experienced zero unique insiders purchasing, and 14 insider sales (see the details of insider trades here).