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We track corporate insiders and hedge funds because we believe they have an edge over ordinary investors. Insiders have material non-public information about their companies, and hedge fund managers can also obtain such information through their sources. Yes, trading on material non-public information is illegal and Raj Rajaratnam was caught. Nevertheless, there are still certain people trading in the grey area. And even when they do not act directly on such information, they are still able to benefit from it by delaying their purchases or sells when they know bad or good news is about to be released.

Below we compiled a list of stocks both insiders and Ken Griffin, the founder and CEO of Citadel, are bullish about. All stocks were purchased by at least one insider over the past month and Griffin invested more than $30 million in these stocks.

Company Name

Ticker

Value

Insiders

APPLE INC

AAPL

927797

1

E TRADE FINANCIAL

ETFC

249833

1

FIFTH THIRD BANCORP

FITB

133769

1

PRINCIPAL FINANCIAL

PFG

86491

1

QUALCOMM INC

QCOM

65565

1

SCHLUMBERGER LTD

SLB

55327

1

CHESAPEAKE ENERGY

CHK

48319

1

BEST BUY COMPANY

BBY

42530

1

AVNET INC

AVT

37659

1

SUSQUEHANNA BANCSHARES

SUSQ

34329

1

The biggest position in Griffin’s portfolio at the end of September was Apple Inc. (NASDAQ:AAPL), in which Citadel had $928 million invested. Apple was bought by one insider during the past month. On November 29, Robert Iger, the director at Apple, purchased 1370 shares at $374.4856 and another 1300 shares at $375.3292. Apple is currently trading at $380.84. It has a market cap of $352.19B and a P/E ratio of 13.69. Stephen Mandel’s Lone Pine Capital also invested $785 million in Apple shares.

Another mega-cap stock both Griffin and insiders are in favor of is Schlumberger Ltd (NYSE:SLB). At the end of the third quarter, Citadel reported to own $55 million worth of Schlumberger stock. One insider purchased Schlumberger over the past month. On November 23, Kjell-Erik Oestdahl bought 3730 shares at $67. Now the stock is trading at $66.59 per share. It has a market cap of $89.02B and a P/E ratio of 20.60. Ken Fisher’s Fisher Asset Management also had $487 million invested in Schlumberger.

Griffin and insiders are also bullish about E*Trade Financial (NASDAQ:ETFC). As of September 30, Citadel had $250 million invested in E*Trade. During the past month, the stock was bought by one insider. Nicholas Utton purchased 6000 shares at $8.0199 on November 23. E*Trade is currently trading at $7.73 per share. It has a market cap of $2.25B and a P/E ratio of 17.56.

Other stocks both Griffin and insiders are also bullish about include Fifth Third Bancorp (NASDAQ:FITB), Principal Financial Group Inc (NYSE:PFG), QualComm Inc (NASDAQ:QCOM), Chesapeake Energy Corp (NYSE:CHK), Best Buy (NYSE:BBY), Avnet Inc (NYSE:AVT), and Susquehanna Bancshares Inc (NASDAQ:SUSQ). Griffin started to trade stock options when he was a freshman at Harvard in 1986 and launched a convertible bond arbitrage fund in 1987, making a large amount of money during the 1987 stock market crash. His Citadel Investment Group is currently one of the largest hedge funds in the world and has a reputation for outstanding execution. Our research has shown that by focusing on the investments of corporate insiders and the best hedge fund managers like Ken Griffin, investors are more likely to outperform the market in the long term.

Source: Ken Griffin And Insiders Are Bullish About These 10 Stocks