We can judge whether BHP Billiton Limited (ADR) (NYSE:BHP) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, research shows that these picks historically outperformed the market when we factor in known risk factors.
BHP Billiton Limited (ADR) (NYSE:BHP) investors should be aware of an increase in hedge fund interest lately. At the end of this article we will also compare BHP to other stocks, including Time Warner Cable Inc (NYSE:TWC), Occidental Petroleum Corporation (NYSE:OXY), and Enterprise Products Partners L.P. (NYSE:EPD) to get a better sense of its popularity.
If you’d ask most shareholders, hedge funds are assumed to be unimportant, old financial vehicles of the past. While there are greater than 8000 funds trading at the moment, We hone in on the crème de la crème of this club, around 700 funds. These hedge fund managers handle the majority of the smart money’s total asset base, and by keeping track of their first-class equity investments, Insider Monkey has deciphered a number of investment strategies that have historically outperformed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per year for a decade in their back tests.
With all of this in mind, let’s take a gander at the fresh action regarding BHP Billiton Limited (ADR) (NYSE:BHP).
What does the smart money think about BHP Billiton Limited (ADR) (NYSE:BHP)?
At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 5% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the number one position in BHP Billiton Limited (ADR) (NYSE:BHP). Arrowstreet Capital has a $18.8 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Segantii Capital, managed by Simon Sadler, which holds a $12.5 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish contain D. E. Shaw’s D E Shaw, Michael Hintze’s CQS Cayman LP and Israel Englander’s Millennium Management.