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.

Why These 4 Stocks are Among the Most Actively Traded Today

The U.S stock market is trading slightly in green territory despite declining oil prices caused by fears about the state of China’s economy. Amid this backdrop, shares of Baxalta Inc (NYSE:BXLT), Shire PLC (ADR) (NASDAQ:SHPG), Arch Coal Inc (NYSE:ACI) and Macy’s, Inc. (NYSE:M) are moving briskly in today’s trading session as investors buy and sell each stock based on various pieces of news. Let’s find out why these stocks have investors talking as well as how hedge funds view each of them.

Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research, we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.

First up is Baxalta Inc (NYSE:BXLT), shares of which have now slid by 2% after initially gapping open higher this morning on the back of London-listed drugmaker Shire PLC (ADR) (NASDAQ:SHPG) agreeing to pay $32 billion to acquire Baxalta. The transaction will be settled in cash and stock, with Baxalta shareholders receiving $18 in cash and 0.1482 Shire American depositary shares per Baxalta share, for a total value of $45.57 per share. The deal’s premium amounts to about 40% when compared to Baxalta’s share price in early August, when Shire first began courting it, and 12.5% of its current price, the latter of which appears to suggest uncertainty among investors as to whether the deal will actually be consummated. In August 2015, the drug maker made a $30 billion all-stock offer, which was rejected by Baxalta because the company felt it was undervalued.

Follow Baxalta Inc (NYSE:BXLT)
Trade (NYSE:BXLT) Now!

During the third quarter, Baxalta Inc (NYSE:BXLT) registered an increase in popularity among the funds we track, with 39 investors holding long positions at the end of September, versus only four funds a quarter earlier, with them amassing around 3.4% of its outstanding stock as of September 30.

On the other hand, Shire PLC (ADR) (NASDAQ:SHPG), which is down by 7.82% today, witnessed a slight decrease in popularity in the third quarter, with 43 investors holding long positions at the end of the period, compared to 44 funds at the end of the second quarter. Among them, John Paulson‘s Paulson & Co was the largest shareholder, reporting ownership of 6.81 million shares in its latest 13F filing.

Follow Shire Plc
Trade (SHPGY) Now!

On the following page we’ll dig into the latest news concerning Arch Coal and Macy’s.

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.
This is a FREE report from Insider Monkey. Credit Card is NOT required.