FedEx Corporation (NYSE:FDX) was in 44 hedge funds’ portfolio at the end of the first quarter of 2013. FDX shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately. There were 44 hedge funds in our database with FDX positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are dozens of gauges shareholders can use to analyze their holdings. A duo of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outclass the S&P 500 by a solid amount (see just how much).
Equally as key, positive insider trading sentiment is another way to parse down the financial markets. There are lots of incentives for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this method if “monkeys” understand what to do (learn more here).
Now, let’s take a gander at the key action regarding FedEx Corporation (NYSE:FDX).
Hedge fund activity in FedEx Corporation (NYSE:FDX)
At the end of the first quarter, a total of 44 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings significantly.
According to our comprehensive database, Southeastern Asset Management, managed by Mason Hawkins, holds the biggest position in FedEx Corporation (NYSE:FDX). Southeastern Asset Management has a $1.63 billion position in the stock, comprising 7.3% of its 13F portfolio. On Southeastern Asset Management’s heels is Edgar Wachenheim of Greenhaven Associates, with a $453.4 million position; the fund has 12.4% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Michael Larson’s Bill & Melinda Gates Foundation Trust, Bain Capital’s Brookside Capital and Donald Chiboucis’s Columbus Circle Investors.
Judging by the fact that FedEx Corporation (NYSE:FDX) has experienced falling interest from the smart money, we can see that there is a sect of hedgies who were dropping their positions entirely at the end of the first quarter. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the largest stake of the 450+ funds we track, valued at about $23 million in stock., and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund said goodbye to about $19.6 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading FedEx Corporation (NYSE:FDX)?
Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the last half-year time period, FedEx Corporation (NYSE:FDX) has experienced zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to FedEx Corporation (NYSE:FDX). These stocks are Hub Group Inc (NASDAQ:HUBG), UTi Worldwide Inc. (NASDAQ:UTIW), Expeditors International of Washington (NASDAQ:EXPD), C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), and United Parcel Service, Inc. (NYSE:UPS). This group of stocks belong to the air delivery & freight services industry and their market caps are closest to FDX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Hub Group Inc (NASDAQ:HUBG)||8||0||4|
|UTi Worldwide Inc. (NASDAQ:UTIW)||11||0||2|
|Expeditors International of Washington (NASDAQ:EXPD)||34||0||9|
|C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)||28||1||8|
|United Parcel Service, Inc. (NYSE:UPS)||42||0||6|
With the results exhibited by the aforementioned research, everyday investors must always watch hedge fund and insider trading activity, and FedEx Corporation (NYSE:FDX) applies perfectly to this mantra.