In the eyes of many of your fellow readers, hedge funds are seen as delayed, old financial tools of a period lost to current times. Although there are In excess of 8,000 hedge funds with their doors open today, Insider Monkey focuses on the leaders of this group, about 525 funds. It is assumed that this group controls most of all hedge funds’ total capital, and by paying attention to their highest performing equity investments, we’ve formulated a few investment strategies that have historically beaten the broader indices. 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 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 look at the marketplace. Obviously, there are lots of motivations for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if piggybackers know where to look (learn more here).
Now that that’s out of the way, let’s discuss the latest info surrounding BCE Inc. (USA) (NYSE:BCE).
Hedge fund activity in BCE Inc. (USA) (NYSE:BCE)
At the end of the second quarter, a total of 15 of the hedge funds we track were long in this stock, a change of 50% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings significantly.
Out of the hedge funds we follow, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in BCE Inc. (USA) (NYSE:BCE). Renaissance Technologies has a $95.5 million position in the stock, comprising 0.3% of its 13F portfolio. On Renaissance Technologies’s heels is Fairfax Financial Holdings, managed by Prem Watsa, which held a $11 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Mario Gabelli’s GAMCO Investors, Israel Englander’s Millennium Management and Steven Cohen’s SAC Capital Advisors.
Consequently, certain money managers were breaking ground themselves. Renaissance Technologies, managed by Jim Simons, assembled the biggest position in BCE Inc. (USA) (NYSE:BCE). Renaissance Technologies had 95.5 million invested in the company at the end of the quarter. Prem Watsa’s Fairfax Financial Holdings also initiated a $11 million position during the quarter. The following funds were also among the new BCE investors: Mario Gabelli’s GAMCO Investors, Israel Englander’s Millennium Management, and Steven Cohen’s SAC Capital Advisors.
How are insiders trading BCE Inc. (USA) (NYSE:BCE)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the last six-month time period, BCE Inc. (USA) (NYSE:BCE) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to BCE Inc. (USA) (NYSE:BCE). These stocks are Windstream Corporation (NASDAQ:WIN), AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), CenturyLink, Inc. (NYSE:CTL), and Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT). This group of stocks are in the telecom services – domestic industry and their market caps are closest to BCE’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Windstream Corporation (NASDAQ:WIN)||11||0||0|
|AT&T Inc. (NYSE:T)||38||0||0|
|Verizon Communications Inc. (NYSE:VZ)||45||0||0|
|CenturyLink, Inc. (NYSE:CTL)||18||0||0|
|Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT)||5||0||0|
Using the results explained by our strategies, regular investors must always pay attention to hedge fund and insider trading activity, and BCE Inc. (USA) (NYSE:BCE) shareholders fit into this picture quite nicely.