In the financial world, there are plenty of metrics shareholders can use to watch publicly traded companies. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can beat the broader indices by a solid margin (see just how much).
Just as crucial, positive insider trading sentiment is a second way to look at the financial markets. There are a number of motivations for a corporate insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this method if “monkeys” understand what to do (learn more here).
Now that that’s out of the way, let’s discuss the latest info surrounding Time Warner Cable Inc (NYSE:TWC).
What have hedge funds been doing with Time Warner Cable Inc (NYSE:TWC)?
At the end of the second quarter, a total of 54 of the hedge funds we track held long positions in this stock, a change of 46% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes considerably.
According to our 13F database, Jonathon Jacobson’s Highfields Capital Management had the most valuable position in Time Warner Cable Inc (NYSE:TWC), worth close to $287.8 million, accounting for 2.4% of its total 13F portfolio. Sitting at the No. 2 spot is Lansdowne Partners, managed by Paul Ruddock and Steve Heinz, which held a $287.1 million position; the fund has 3.6% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Larry Robbins’s Glenview Capital, Ken Griffin’s Citadel Investment Group and John Thaler’s JAT Capital Management.
Now, particular hedge funds were leading the bulls’ herd. Highfields Capital Management, managed by Jonathon Jacobson, assembled the most outsized position in Time Warner Cable Inc (NYSE:TWC). Highfields Capital Management had 287.8 million invested in the company at the end of the quarter. Paul Ruddockáand Steve Heinz’s Lansdowne Partners also made a $287.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Larry Robbins’s Glenview Capital, Ken Griffin’s Citadel Investment Group, and John Thaler’s JAT Capital Management.
Insider trading activity in Time Warner Cable Inc (NYSE:TWC)
Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest half-year time period, Time Warner Cable Inc (NYSE:TWC) has seen zero unique insiders buying, and 10 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Time Warner Cable Inc (NYSE:TWC). These stocks are DISH Network Corp. (NASDAQ:DISH), Liberty Global Inc. (NASDAQ:LBTYA), Discovery Communications Inc. (NASDAQ:DISCA), DIRECTV (NASDAQ:DTV), and Viacom, Inc. (NASDAQ:VIAB). This group of stocks are in the catv systems industry and their market caps are closest to TWC’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|DISH Network Corp. (NASDAQ:DISH)||56||0||14|
|Liberty Global Inc. (NASDAQ:LBTYA)||78||0||0|
|Discovery Communications Inc. (NASDAQ:DISCA)||13||1||6|
|Viacom, Inc. (NASDAQ:VIAB)||47||0||0|
Using the returns shown by our strategies, average investors should always keep one eye on hedge fund and insider trading sentiment, and Time Warner Cable Inc (NYSE:TWC) shareholders fit into this picture quite nicely.