Should You Avoid Frontier Communications Corp (FTR)?

Frontier Communications Corp (NASDAQ:FTR) was in 18 hedge funds’ portfolio at the end of the first quarter of 2013. FTR has experienced a decrease in hedge fund interest in recent months. There were 21 hedge funds in our database with FTR positions at the end of the previous quarter.

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Keeping this in mind, it’s important to take a glance at the recent action surrounding Frontier Communications Corp (NASDAQ:FTR).

How have hedgies been trading Frontier Communications Corp (NASDAQ:FTR)?

At Q1’s end, a total of 18 of the hedge funds we track held long positions in this stock, a change of -14% from one quarter earlier. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.

Should You Buy This 8.5% Yielding Stock?According to our comprehensive database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in Frontier Communications Corp (NASDAQ:FTR). Adage Capital Management has a $135 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Bernard Horn of Polaris Capital Management, with a $47.3 million position; 2.8% of its 13F portfolio is allocated to the stock. Some other hedgies with similar optimism include Chase Coleman and Feroz Dewan’s Tiger Global Management LLC, Richard L. Haydon’s Yield Capital Partners (Y/Cap Management) and Jeffrey Jon Berney’s TriOaks Capital Management.

Due to the fact that Frontier Communications Corp (NASDAQ:FTR) has experienced bearish sentiment from the smart money, it’s safe to say that there exists a select few hedge funds who sold off their entire stakes last quarter. Intriguingly, Prem Watsa’s Fairfax Financial Holdings said goodbye to the largest stake of the “upper crust” of funds we monitor, valued at about $68.7 million in stock., and Paul Tudor Jones of Tudor Investment Corp was right behind this move, as the fund said goodbye to about $17.1 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 3 funds last quarter.

How are insiders trading Frontier Communications Corp (NASDAQ:FTR)?

Bullish insider trading is most useful when the company in question has seen transactions within the past six months. Over the latest 180-day time period, Frontier Communications Corp (NASDAQ:FTR) has experienced 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 Frontier Communications Corp (NASDAQ:FTR). These stocks are Consolidated Communications Holdings Inc (NASDAQ:CNSL), CenturyLink, Inc. (NYSE:CTL), Atlantic Tele-Network, Inc. (NASDAQ:ATNI), Windstream Corporation (NASDAQ:WIN), and TW Telecom Inc (NASDAQ:TWTC). All of these stocks are in the telecom services – domestic industry and their market caps resemble FTR’s market cap.