Caterpillar Inc. (NYSE:CAT) was in 33 hedge funds’ portfolio at the end of the fourth quarter of 2012. CAT investors should be aware of a decrease in support from the world’s most elite money managers lately. There were 37 hedge funds in our database with CAT holdings at the end of the previous quarter. This is important, because just today Credit Suisse decreased the price target and estimates on earnings for Caterpillar Inc. (NYSE:CAT).
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With these “truths” under our belt, we’re going to take a look at the key action encompassing Caterpillar Inc. (NYSE:CAT).
What does the smart money think about Caterpillar Inc. (NYSE:CAT)?
In preparation for this year, a total of 33 of the hedge funds we track were bullish in this stock, a change of -11% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.
According to our comprehensive database, Bill & Melinda Gates Foundation Trust, managed by Michael Larson, holds the most valuable position in Caterpillar Inc. (NYSE:CAT). Bill & Melinda Gates Foundation Trust has a $919.2 million position in the stock, comprising 5.5% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $120.4 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include D. E. Shaw’s D E Shaw, Phill Gross and Robert Atchinson’s Adage Capital Management and Donald Chiboucis’s Columbus Circle Investors.
Due to the fact that Caterpillar Inc. (NYSE:CAT) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few hedgies that decided to sell off their positions entirely last quarter. At the top of the heap, John Murphy’s Alydar Capital said goodbye to the biggest investment of the “upper crust” of funds we track, totaling about $24.6 million in stock.. Peter J. Eichler Jr.’s fund, Aletheia Research and Management, also dumped its stock, about $23.3 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 4 funds last quarter.
What have insiders been doing with Caterpillar Inc. (NYSE:CAT)?
Insider purchases made by high-level executives is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time frame, Caterpillar Inc. (NYSE:CAT) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Caterpillar Inc. (NYSE:CAT). These stocks are Terex Corporation (NYSE:TEX), AGCO Corporation (NYSE:AGCO), Joy Global Inc. (NYSE:JOY), CNH Global NV (ADR) (NYSE:CNH), and Deere & Company (NYSE:DE). This group of stocks are the members of the farm & construction machinery industry and their market caps are closest to CAT’s market cap.