Is Exelon Corporation (NYSE:EXC) ready to raly soon? Hedge funds are turning bullish. The number of bullish hedge fund positions improved by 2 recently.
In the eyes of most stock holders, hedge funds are viewed as worthless, old financial tools of years past. While there are more than 8000 funds trading at present, we at Insider Monkey hone in on the moguls of this club, close to 450 funds. It is widely believed that this group controls the majority of the hedge fund industry’s total capital, and by tracking their best picks, we have unsheathed a number of investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year 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 outperformed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Just as important, positive insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are plenty of motivations for an upper level exec to get rid of shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this method if investors know what to do (learn more here).
Keeping this in mind, it’s important to take a gander at the latest action surrounding Exelon Corporation (NYSE:EXC).
Hedge fund activity in Exelon Corporation (NYSE:EXC)
In preparation for this year, a total of 25 of the hedge funds we track were long in this stock, a change of 9% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes meaningfully.
Of the funds we track, Ken Griffin’s Citadel Investment Group had the most valuable position in Exelon Corporation (NYSE:EXC), worth close to $63 million billion, accounting for 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Carlson Capital, managed by Clint Carlson, which held a $37 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining peers that are bullish include John A. Levin’s Levin Capital Strategies, Sean Cullinan’s Point State Capital and Jonathan Kolatch’s Redwood Capital Management.
Consequently, key money managers have been driving this bullishness. Carlson Capital, managed by Clint Carlson, initiated the largest position in Exelon Corporation (NYSE:EXC). Carlson Capital had 37 million invested in the company at the end of the quarter. Sean Cullinan’s Point State Capital also made a $26 million investment in the stock during the quarter. The other funds with new positions in the stock are Jonathan Kolatch’s Redwood Capital Management, Charles Clough’s Clough Capital Partners, and Glenn Russell Dubin’s Highbridge Capital Management.
How are insiders trading Exelon Corporation (NYSE:EXC)?
Insider buying is most useful when the company in focus has experienced transactions within the past 180 days. Over the last half-year time frame, Exelon Corporation (NYSE:EXC) has seen 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
With the results exhibited by the aforementioned tactics, everyday investors should always watch hedge fund and insider trading sentiment, and Exelon Corporation (NYSE:EXC) shareholders fit into this picture quite nicely.
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