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In the eyes of most shareholders, hedge funds are assumed to be worthless, outdated investment vehicles of yesteryear.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

blog comments powered by Disqus
Insider Monkey Headlines
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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!