Who’s Buying Alcatel Lucent SA (ADR) (ALU)?

Is Alcatel Lucent SA (ADR) (NYSE:ALU) undervalued? Hedge funds are getting more optimistic. The number of bullish hedge fund positions inched up by 1 in recent months.

In the eyes of most shareholders, hedge funds are assumed to be worthless, outdated investment vehicles of yesteryear. While there are more than 8000 funds in operation at present, we hone in on the leaders of this group, about 450 funds. Most estimates calculate that this group controls the majority of all hedge funds’ total asset base, and by watching their top investments, we have determined a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as integral, optimistic insider trading activity is another way to parse down the stock market universe. As the old adage goes: there are plenty of reasons for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would buy. Various empirical studies have demonstrated the valuable potential of this tactic if shareholders know what to do (learn more here).

With these “truths” under our belt, we’re going to take a look at the key action encompassing Alcatel Lucent SA (ADR) (NYSE:ALU).

What does the smart money think about Alcatel Lucent SA (ADR) (NYSE:ALU)?

In preparation for this quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of 6% from the first quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.

Alcatel Lucent SA (ADR) (NYSE:ALU)Of the funds we track, Steven Cohen’s SAC Capital Advisors had the largest position in Alcatel Lucent SA (ADR) (NYSE:ALU), worth close to $45.8 million, comprising 0.2% of its total 13F portfolio. The second largest stake is held by Jericho Capital Asset Management, managed by Josh Resnick, which held a $24.9 million position; 2.6% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Brett Hendrickson’s Nokomis Capital, Scott Fine and Peter Richards’s Empire Capital Management and Joseph A. Jolson’s Harvest Capital Strategies.

Consequently, specific money managers were leading the bulls’ herd. Empire Capital Management, managed by Scott Fine and Peter Richards, created the most outsized position in Alcatel Lucent SA (ADR) (NYSE:ALU). Empire Capital Management had 9.6 million invested in the company at the end of the quarter. Joseph A. Jolson’s Harvest Capital Strategies also initiated a $7.7 million position during the quarter. The following funds were also among the new ALU investors: Gregory A. Weaver’s Invicta Capital Management, SAC Subsidiary’s Sigma Capital Management, and Michael Kao’s Akanthos Capital.

How have insiders been trading Alcatel Lucent SA (ADR) (NYSE:ALU)?

Insider buying is particularly usable when the company in question has seen transactions within the past 180 days. Over the last half-year time frame, Alcatel Lucent SA (ADR) (NYSE:ALU) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results demonstrated by our studies, everyday investors should always watch hedge fund and insider trading sentiment, and Alcatel Lucent SA (ADR) (NYSE:ALU) is an important part of this process.

Click here to learn why you should track hedge funds

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 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

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!