Yahoo! Inc. (YHOO): Surprisingly, Insiders and Hedge Funds Aren’t Buying

Page 1 of 2

Yahoo! Inc. (NASDAQ:YHOO) has been a trendy pick among many investors, and shares have ballooned in 2013. Hedge funds, though, seem like their standing pat, electing not to add more YHOO shares of late.

If you were to ask many market players, hedge funds are viewed as delayed, outdated financial vehicles of a forgotten age. Although there are more than 8,000 hedge funds trading in present day, Insider Monkey focuses on the moguls of this club, close to 525 funds. It is widely held that this group oversees the lion’s share of the smart money’s total capital, and by paying attention to their best investments, we’ve deciphered a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Equally as useful, bullish insider trading sentiment is another way to analyze the marketplace. Just as you’d expect, there are plenty of stimuli for an upper level exec to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this tactic if piggybackers understand where to look (learn more here).

marissa mayer waving flag

Now that that’s out of the way, it’s important to examine the latest info for Yahoo! Inc. (NASDAQ:YHOO).

How have hedgies been trading Yahoo! Inc. (NASDAQ:YHOO)?

In preparation for the third quarter, a total of 66 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings substantially.

According to our 13F database, Third Point, managed by Dan Loeb, holds the biggest position in Yahoo! Inc. (NASDAQ:YHOO). Third Point has a $1.5581 billion position in the stock, comprising 35.3% of its 13F portfolio. Sitting at the No. 2 spot is Farallon Capital, managed by Andrew J. M. Spokes, which held a $283.1 million position; 5.4% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Cliff Asness’s AQR Capital Management, James Dinan’s York Capital Management and John Thaler’s JAT Capital Management.

As Yahoo! Inc. (NASDAQ:YHOO) has witnessed dropping sentiment from upper-tier hedge fund managers, it’s safe to say that there is a sect of hedge funds who sold off their positions entirely heading into Q2. Intriguingly, Michael Lowenstein’s Kensico Capital dumped the largest stake of the “upper crust” of funds we track, totaling close to $106 million in stock. Christopher MedlockáJames’s fund, Partner Fund Management, also sold off its stock, about $63 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Insider trading activity in Yahoo! Inc. (NASDAQ:YHOO)

Insider buying is best served when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time period, Yahoo! Inc. (NASDAQ:YHOO) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Yahoo! Inc. (NASDAQ:YHOO). These stocks are Tripadvisor Inc (NASDAQ:TRIP), Yandex NV (NASDAQ:YNDX), Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD), and Baidu.com, Inc. (ADR) (NASDAQ:BIDU). This group of stocks are in the internet information providers industry and their market caps match YHOO’s market cap.

Page 1 of 2
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!