Cellcom Israel Ltd. (NYSE:CEL) was in 4 hedge funds’ portfolio at the end of March. CEL investors should be aware of a decrease in enthusiasm from smart money lately. There were 11 hedge funds in our database with CEL holdings at the end of the previous quarter.
If you’d ask most traders, hedge funds are viewed as unimportant, outdated financial vehicles of the past. While there are greater than 8000 funds in operation today, we at Insider Monkey choose to focus on the leaders of this club, about 450 funds. Most estimates calculate that this group oversees the lion’s share of the smart money’s total asset base, and by keeping an eye on their best picks, we have discovered a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 23.3 percentage points in 8 months (see all of our picks from August).
Just as important, optimistic insider trading sentiment is a second way to break down the marketplace. There are plenty of incentives for an insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this tactic if shareholders know what to do (learn more here).
Keeping this in mind, we’re going to take a peek at the key action regarding Cellcom Israel Ltd. (NYSE:CEL).
How are hedge funds trading Cellcom Israel Ltd. (NYSE:CEL)?
At Q1’s end, a total of 4 of the hedge funds we track were bullish in this stock, a change of -64% from the previous quarter.
Since Cellcom Israel Ltd. (NYSE:CEL) has witnessed falling interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of funds that elected to cut their full holdings in Q1. Interestingly, Israel Englander’s Millennium Management dropped the largest investment of the “upper crust” of funds we watch, worth close to $1 million in stock.. Neil Chriss’s fund, Hutchin Hill Capital, also dumped its stock, about $0.5 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 7 funds in Q1.
How are insiders trading Cellcom Israel Ltd. (NYSE:CEL)?
Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past six months. Over the last six-month time frame, Cellcom Israel Ltd. (NYSE:CEL) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Cellcom Israel Ltd. (NYSE:CEL). These stocks are Pendrell Corporation – Class A (NASDAQ:PCO), Leap Wireless International, Inc. (NASDAQ:LEAP), Ubiquiti Networks Inc (NASDAQ:UBNT), Partner Communications Company Ltd (ADR) (NASDAQ:PTNR), and NII Holdings, Inc. (NASDAQ:NIHD). This group of stocks are in the wireless communications industry and their market caps match CEL’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Pendrell Corporation – Class A (NASDAQ:PCO)||8||0||1|
|Leap Wireless International, Inc. (NASDAQ:LEAP)||14||0||4|
|Ubiquiti Networks Inc (NASDAQ:UBNT)||8||0||6|
|Partner Communications Company Ltd (ADR) (NASDAQ:PTNR)||5||0||0|
|NII Holdings, Inc. (NASDAQ:NIHD)||12||0||0|
With the results shown by Insider Monkey’s tactics, everyday investors must always keep an eye on hedge fund and insider trading activity, and Cellcom Israel Ltd. (NYSE:CEL) applies perfectly to this mantra.