Yahoo! Inc. (NASDAQ:YHOO) shareholders have witnessed a decrease in enthusiasm from smart money recently.
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Equally as important, bullish insider trading activity is another way to break down the financial markets. There are a number of stimuli for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).
Keeping this in mind, we’re going to take a look at the key action regarding Yahoo! Inc. (NASDAQ:YHOO).
How are hedge funds trading Yahoo! Inc. (NASDAQ:YHOO)?
At the end of the fourth quarter, a total of 60 of the hedge funds we track were long in this stock, a change of -3% from one quarter earlier. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings significantly.
According to our comprehensive database, Third Point, managed by Dan Loeb, holds the biggest position in Yahoo! Inc. (NASDAQ:YHOO). Third Point has a $1.453 billion position in the stock, comprising 26.6% of its 13F portfolio. Sitting at the No. 2 spot is Tiger Global Management LLC, with a $279 million position; the fund has 5.2% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include D. E. Shaw’s D E Shaw, and Jeffrey Tannenbaum’s Fir Tree.
Seeing as Yahoo! Inc. (NASDAQ:YHOO) has witnessed a declination in interest from the smart money, we can see that there was a specific group of funds who sold off their entire stakes last quarter. It’s worth mentioning that Curtis Macnguyen’s Ivory Capital (Investment Mgmt) cut the largest position of the 450+ funds we track, comprising about $121 million in call options. Michael A. Price and Amos Meron’s fund, Empyrean Capital Partners, also sold off its stock, about $100 million worth. These transactions are important to note, as total hedge fund interest was cut by 2 funds last quarter.
What do corporate executives and insiders think about Yahoo! Inc. (NASDAQ:YHOO)?
Insider purchases made by high-level executives is best served when the company in focus has experienced transactions within the past six months. Over the last six-month time frame, Yahoo! Inc. (NASDAQ:YHOO) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
With the returns demonstrated by the aforementioned time-tested strategies, retail investors should always monitor hedge fund and insider trading activity, and Yahoo! Inc. (NASDAQ:YHOO) is no exception.
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