Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

WABCO Holdings Inc. (WBC): Hedge Funds and Insiders Are Bullish, What Should You Do?

In the financial world, there are dozens of metrics market participants can use to monitor their holdings. A pair of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can trounce the S&P 500 by a significant amount (see just how much).

Equally as useful, optimistic insider trading activity is a second way to look at the investments you’re interested in. Obviously, there are lots of incentives for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this strategy if you understand what to do (learn more here).

Now that that’s out of the way, it’s important to examine the latest info surrounding WABCO Holdings Inc. (NYSE:WBC).

Hedge fund activity in WABCO Holdings Inc. (NYSE:WBC)

In preparation for the third quarter, a total of 33 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially.

WABCO Holdings Inc. (NYSE:WBC)Out of the hedge funds we follow, Berkshire Hathaway, managed by Warren Buffett, holds the largest position in WABCO Holdings Inc. (NYSE:WBC). Berkshire Hathaway has a $304.5 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is Alan Fournier of Pennant Capital Management, with a $225.1 million position; the fund has 4.2% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Bob Peck and Andy Raab’s FPR Partners, D. E. Shaw’s D E Shaw and Phill Gross and Robert Atchinson’s Adage Capital Management.

Because WABCO Holdings Inc. (NYSE:WBC) has faced bearish sentiment from upper-tier hedge fund managers, it’s safe to say that there is a sect of money managers who were dropping their entire stakes last quarter. It’s worth mentioning that Dinakar Singh’s TPG-AXON Management LP sold off the biggest stake of all the hedgies we key on, comprising about $59.8 million in stock. Rob Butts and Josh Clark’s fund, Southpoint Capital Advisors, also said goodbye to its stock, about $30 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with WABCO Holdings Inc. (NYSE:WBC)?

Insider buying is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time period, WABCO Holdings Inc. (NYSE:WBC) has seen zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to WABCO Holdings Inc. (NYSE:WBC). These stocks are TRW Automotive Holdings Corp. (NYSE:TRW), Visteon Corp (NYSE:VC), LKQ Corporation (NASDAQ:LKQ), Lear Corporation (NYSE:LEA), and Allison Transmission Holdings Inc (NYSE:ALSN). All of these stocks are in the auto parts industry and their market caps are similar to WBC’s market cap.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.