AmerisourceBergen Corp. (ABC): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

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AmerisourceBergen Corp. (NYSE:ABC) was in 25 hedge funds’ portfolio at the end of March. ABC has experienced an increase in activity from the world’s largest hedge funds in recent months. There were 17 hedge funds in our database with ABC positions at the end of the previous quarter.

AmerisourceBergen Corp. (NYSE:ABC)

In the financial world, there are tons of methods investors can use to track their holdings. Some of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can outpace the market by a superb margin (see just how much).

Just as integral, positive insider trading activity is another way to break down the stock market universe. As the old adage goes: there are a variety of motivations for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this tactic if investors know what to do (learn more here).

Keeping this in mind, we’re going to take a look at the recent action regarding AmerisourceBergen Corp. (NYSE:ABC).

What does the smart money think about AmerisourceBergen Corp. (NYSE:ABC)?

In preparation for this quarter, a total of 25 of the hedge funds we track were bullish in this stock, a change of 47% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the largest position in AmerisourceBergen Corp. (NYSE:ABC). Citadel Investment Group has a $94.1 million position in the stock, comprising 0.1% of its 13F portfolio. On Citadel Investment Group’s heels is Glenview Capital, managed by Larry Robbins, which held a $92.7 million position; the fund has 1% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include James Dinan’s York Capital Management, Panayotis Takis Sparaggis’s Alkeon Capital Management and Doug Silverman and Alexander Klabin’s Senator Investment Group.

As one would reasonably expect, key hedge funds have jumped into AmerisourceBergen Corp. (NYSE:ABC) headfirst. Glenview Capital, managed by Larry Robbins, created the largest position in AmerisourceBergen Corp. (NYSE:ABC). Glenview Capital had 92.7 million invested in the company at the end of the quarter. James Dinan’s York Capital Management also initiated a $82.4 million position during the quarter. The other funds with new positions in the stock are Panayotis Takis Sparaggis’s Alkeon Capital Management, Robert Pohly’s Samlyn Capital, and Michael Karsch’s Karsch Capital Management.

How are insiders trading AmerisourceBergen Corp. (NYSE:ABC)?

Insider buying is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the last half-year time period, AmerisourceBergen Corp. (NYSE:ABC) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to AmerisourceBergen Corp. (NYSE:ABC). These stocks are Omnicare, Inc. (NYSE:OCR), McKesson Corporation (NYSE:MCK), “, and Cardinal Health, Inc. (NYSE:CAH). All of these stocks are in the drugs wholesale industry and their market caps are closest to ABC’s market cap.

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