L-3 Communications Holdings, Inc. (NYSE:LLL) was in 14 hedge funds’ portfolio at the end of the fourth quarter of 2012. LLL has seen a decrease in hedge fund sentiment in recent months. There were 20 hedge funds in our database with LLL holdings at the end of the previous quarter.
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With all of this in mind, let’s take a glance at the key action regarding L-3 Communications Holdings, Inc. (NYSE:LLL).
How have hedgies been trading L-3 Communications Holdings, Inc. (NYSE:LLL)?
At year’s end, a total of 14 of the hedge funds we track were long in this stock, a change of -30% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies we track, Pzena Investment Management, managed by Richard S. Pzena, holds the largest position in L-3 Communications Holdings, Inc. (NYSE:LLL). Pzena Investment Management has a $244 million position in the stock, comprising 2% of its 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $45 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include D. E. Shaw’s D E Shaw, David Harding’s Winton Capital Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Seeing as L-3 Communications Holdings, Inc. (NYSE:LLL) has witnessed declining sentiment from hedge fund managers, logic holds that there is a sect of money managers that decided to sell off their full holdings last quarter. At the top of the heap, Yale M. Fergang and Robert W. Medway’s Royal Capital sold off the biggest stake of all the hedgies we track, worth close to $14 million in stock.. Tom Facciola’s fund, Tigershark Partners, also sold off its stock, about $1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds last quarter.
How have insiders been trading L-3 Communications Holdings, Inc. (NYSE:LLL)?
Bullish insider trading is best served when the company in question has experienced transactions within the past 180 days. Over the last six-month time frame, L-3 Communications Holdings, Inc. (NYSE:LLL) has seen zero unique insiders buying, and 9 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to L-3 Communications Holdings, Inc. (NYSE:LLL). These stocks are Triumph Group Inc (NYSE:TGI), Rockwell Collins, Inc. (NYSE:COL), B/E Aerospace Inc (NASDAQ:BEAV), Embraer SA (ADR) (NYSE:ERJ), and TransDigm Group Incorporated (NYSE:TDG). All of these stocks are in the aerospace/defense products & services industry and their market caps are closest to LLL’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Triumph Group Inc (NYSE:TGI) | 23 | 2 | 3 |
| Rockwell Collins, Inc. (NYSE:COL) | 16 | 0 | 11 |
| B/E Aerospace Inc (NASDAQ:BEAV) | 28 | 0 | 9 |
| Embraer SA (ADR) (NYSE:ERJ) | 8 | 0 | 0 |
| TransDigm Group Incorporated (NYSE:TDG) | 31 | 1 | 7 |
With the returns demonstrated by Insider Monkey’s studies, retail investors should always pay attention to hedge fund and insider trading activity, and L-3 Communications Holdings, Inc. (NYSE:LLL) applies perfectly to this mantra.
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