We track more than 300 hedge funds. Hedge funds devote significant resources to researching stocks. Sometimes hedge funds cross the line and try to obtain material non-public information before investing. Corporate insiders have material non-public information. Sometimes they trade based on it. Other times they have an edge because they know their companies and industries better than almost all investors. We believe that by imitating the stock picks of these smartest investors in the world, investors are more likely to beat the market in the long term.
Below we compiled a list of 29 stocks that have insider purchases last week and are held by at least 17 hedge funds followed by Insider Monkey.
Ticker | No. of Insider Purchases | No. of Hedge Funds | YTD Return | |
VALEANT | 1 | 45 | 45.58% | |
RED ROBIN GOURMET | 1 | 17 | 23.80% | |
REYNOLDS AMERICAN | 1 | 19 | 20.40% | |
BLOCK H & R INC | 1 | 17 | 16.68% | |
NORDSTROM INC | 1 | 26 | 12.05% | |
WENDYS ARBYS | 1 | 18 | 7.47% | |
SARA LEE CORP | SLE | 1 | 30 | 2.04% |
SANDRIDGE ENERGY | 1 | 24 | 1.21% | |
VMWARE INC | 1 | 32 | 0.67% | |
SMITHFIELD FOODS | 1 | 18 | -0.60% | |
KRONOS WORLDWIDE | 1 | 17 | -2.90% | |
CONTINENTAL RES | 1 | 17 | -4.74% | |
P G & E CORP | 1 | 18 | -8.28% | |
SEACOR HOLDINGS | 1 | 17 | -11.18% | |
OWENS CORNING | 1 | 30 | -13.94% | |
INVESCO MORTGAGE CAP | 2 | 17 | -14.08% | |
CHEMTURA CORP | 1 | 29 | -16.81% | |
HESS CORP | 1 | 33 | -20.08% | |
LEGG MASON INC | 1 | 17 | -21.14% | |
CLEAR CHANNEL OUTD | 1 | 17 | -24.47% | |
NAVISTAR INTL | 2 | 32 | -31.68% | |
E X C O RESOURCES INC | 2 | 35 | -34.31% | |
AMERICAN AXLE & MFG | 1 | 17 | -36.69% | |
FORD MOTOR | 1 | 48 | -38.43% | |
ARCH COAL INC | 1 | 25 | -43.39% | |
BOYD GAMING | 1 | 17 | -43.85% | |
TEREX CORP | 1 | 18 | -56.85% | |
TALBOTS INC | 1 | 18 | -62.87% | |
DENDREON CORP | 1 | 21 | -67.59% |
Valeant Pharmaceuticals Intl Inc (VRX): Valeant is a multinational, specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products. Forty-five hedge funds had VRX at the end of June and one insider purchased the stock last week. It has a market cap of $12.12B, a P/E ratio of 13.06, and returned 45.58% since the beginning of this year. Jeffrey Ubben invested $784 million in VRX shares (check out Ubben’s top stock picks).
Red Robin Gourmet Burgers Inc (RRGB): Red Robin is a casual dining restaurant chain focused on serving gourmet burgers. Seventeen hedge funds had RRGB at the end of June and one insider purchased the stock last week. It has a market cap of $403.24M, a P/E ratio of 30.79, and returned 23.80% since the beginning of this year. Phill Gross and Robert Atchinson had $35 million invested in RRGB.
Reynolds American Inc (RAI): Reynolds manufactures cigarette and smokeless tobacco. Nineteen hedge funds had RAI the end of June and one insider purchased the stock last week. It has a market cap of $21.84B, a P/E ratio of 16.28, and returned 20.40% since the beginning of this year. David Winters and Jim Simons both invested over $40 million in RAI shares (check out Simons’ top stock picks).
Block H&R Inc (HRB): H&R Block is a tax service provider. Seventeen hedge funds had HRB the end of June and one insider purchased the stock last week. It has a market cap of $4.27B, a P/E ratio of 11.47, and returned 16.68% since the beginning of this year. Andreas Halvorsen invested $324 million in HRB.
Nordstrom Inc (JWN): Nordstrom is a fashion specialty retailer. Twenty-six hedge funds had JWN at the end of June and one insider purchased the stock last week. It has a market cap of $10.02B, a P/E ratio of 15.62, and returned 12.05% since the beginning of this year. Jeffrey Vinik had $127 million JWN stocks.
Wendy’s Arby’s Group Inc (WEN): Wendy’s Arby’s Group provides fast food mainly in US and Canada. Eighteen hedge funds had WEN at the end of June and one insider purchased the stock last week. It has a market cap of $1.94B and returned 7.47% since the beginning of this year. Nelson Peltz invested $388 million in WEN shares.
Sara Lee Corp (SLE): Sara Lee is a global manufacturer and marketer of brand-name products for consumers globally focused primarily on the meats, bakery, beverage and household products categories. 30 hedge funds had SLE at the end of June and one insider purchased the stock last week. It has a market cap of $10.09B, a P/E ratio of 32.83, and returned 2.04% since the beginning of this year. Jeffrey Ubben invested $387 million in SLE. Dan Loeb also had $126 million invested in SLE shares.
SandRidge Energy Inc (SD): SandRidge is an independent oil and natural gas company. Twenty-four hedge funds had SD at the end of June and one insider purchased the stock last week. It has a market cap of $2.96B and returned 1.21% since the beginning of this year. Wallace Weitz invested $59 million in SD shares.
VMware Inc (VMW): VMware is a provider of virtualization solutions from the desktop to the data center. Thirty-two hedge funds had VMW at the end of June and one insider purchased the stock last week. It has a market cap of $38.41B, a P/E ratio of 70.89, and returned 0.67% since the beginning of this year. Jim Simons had $76 million invested in VMW shares.
Smithfield Foods Inc (SFD): Smithfield Foods produces and markets a range of fresh meat and packaged meat products. Eighteen hedge funds had SFD at the end of June and one insider purchased the stock last week. It has a market cap of $3.14B, a P/E ratio of 6.11, and returned -0.60% since the beginning of this year. Alec Litowitz and Ross Laser had $14 million invested in SFD shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
