Ford Motor Company (NYSE:F) was in 58 hedge funds’ portfolio at the end of December. F investors should be aware of an increase in activity from the world’s largest hedge funds of late. There were 53 hedge funds in our database with F positions at the end of the previous quarter.
In the eyes of most stock holders, hedge funds are seen as slow, old investment tools of years past. While there are more than 8000 funds in operation today, we at Insider Monkey hone in on the moguls of this group, around 450 funds. Most estimates calculate that this group oversees the lion’s share of the smart money’s total capital, and by paying attention to their top equity investments, we have unsheathed a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 beaten the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Equally as key, positive insider trading activity is a second way to break down the marketplace. Obviously, there are many motivations for an insider to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this tactic if investors know what to do (learn more here).
With all of this in mind, it’s important to take a peek at the key action surrounding Ford Motor Company (NYSE:F).
Hedge fund activity in Ford Motor Company (NYSE:F)
In preparation for this year, a total of 58 of the hedge funds we track held long positions in this stock, a change of 9% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes considerably.
Of the funds we track, Bill Miller’s Legg Mason Capital Management had the biggest position in Ford Motor Company (NYSE:F), worth close to $159 million, accounting for 2.8% of its total 13F portfolio. On Legg Mason Capital Management’s heels is David Tepper of Appaloosa Management LP, with a $144 million position; 0.3% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include Ken Heebner’s Capital Growth Management, Robert Bishop’s Impala Asset Management and Jean-Marie Eveillard’s First Eagle Investment Management.
As one would reasonably expect, key hedge funds were leading the bulls’ herd. First Eagle Investment Management, managed by Jean-Marie Eveillard, initiated the largest position in Ford Motor Company (NYSE:F). First Eagle Investment Management had 89 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also made a $63 million investment in the stock during the quarter. The other funds with brand new F positions are Curtis Macnguyen’s Ivory Capital (Investment Mgmt), Bruce Kovner’s Caxton Associates LP, and George Soros’s Soros Fund Management.
What do corporate executives and insiders think about Ford Motor Company (NYSE:F)?
Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the latest half-year time period, Ford Motor Company (NYSE:F) has seen zero unique insiders purchasing, and 13 insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey’s studies, everyday investors must always pay attention to hedge fund and insider trading activity, and Ford Motor Company (NYSE:F) shareholders fit into this picture quite nicely.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.