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If you were to ask many market players, hedge funds are viewed as delayed, outdated financial vehicles of a forgotten age.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 Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!