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It is no secret that there are insiders and hedge fund managers who break the law and trade based on illegal inside information. We track corporate insiders and hedge funds because we believe they have an edge over ordinary investors. Corporate insiders know their companies and their industries way better than other investors. Even when they aren’t using inside information they are more likely to time their transactions better than ordinary investors. Hedge fund managers have the resources to conduct in-depth analysis of their target companies, and they have access to top managers or experts in those industries. Our research has shown that imitating top picks of insiders and hedge fund managers has historically delivered above market returns.

In this article, we are going to focus on the stocks that insiders and hedge funds are most bullish about. Below we compiled a list of US stocks with at least $10 billion market cap, at least one insider purchase over the past month, and there are at least 20 hedge funds with bullish positions.

Ticker

Company

No of Insiders

No of HF

AAPL

Apple Inc.

1

125

QCOM

Qualcomm

1

66

HAL

Halliburton Company

1

47

F

Ford Motor Co.

1

43

HPQ

Hewlett-Packard Company

1

43

SLB

Schlumberger Limited

1

42

DIS

Walt Disney Co.

1

34

BK

The Bank of New York Mellon

1

32

MPC

Marathon Petroleum Corp

1

31

SCHW

The Charles Schwab Corp

1

31

MJN

Mead Johnson Nutrition

1

30

FITB

Fifth Third Bancorp

1

29

VMW

VMware, Inc.

1

28

CHK

Chesapeake Energy Corporation

1

27

NLY

Annaly Capital

1

27

HON

Honeywell International Inc.

1

26

MHP

The McGraw-Hill Companies

1

26

CELG

Celgene Corporation

2

25

SYK

Stryker Corp.

1

23

AIG

American International Group

2

22

Apple Inc (NASDAQ:AAPL) is the most popular stock among hedge funds tracked by Insider Monkey. There are 125 hedge funds reported to own AAPL at the end of September. For example, Ken Griffin’s Citadel Investment Group had $928 million invested in AAPL shares as of September 30. The stock was also purchased by one insider over the past month. On November 29, Robert Iger bought 1370 shares at $374.4856 and another 1300 shares at $375.3292. Now the stock is trading at $396.19. AAPL has a market cap of $368B and a P/E ratio of 14.31. It returned 20.14% since the beginning of this year.

Qualcomm Inc (NASDAQ:QCOM) is another stock that hedge funds and insiders love. There are 66 hedge funds with QCOM positions at the end of the third quarter. Among them, Stephen Mandel’s Lone Pine Capital had the largest position of QCOM. The fund reported to own $351 million of QCOM at the end of September. During the past month, one insider bought QCOM. On November 28, Francisco Ros purchased 275 shares at $53.7867 per share. Ros also bought 200 shares at $49.3167 in early September. QCOM is currently trading at $53.39. It has a market cap of $91B and a P/E ratio of 19.97.

Another large-cap stock insiders and hedge funds are bullish about is Schlumberger Ltd (NYSE:SLB). At the end of September, there were 42 hedge funds had SLB in its 13F portfolios. Ken Fisher’s Fisher Asset Management, for example, had $487 million invested in SLB. SLB was also purchased by one insider during the past month. Kjell-Erik Oestdahl purchased 3730 shares at $67 on November 23. Now SLB is trading at $67.33 per share. It has a market cap of $91.5B and a P/E ratio of 21.17.

Other stocks insiders and hedge funds love include Walt Disney Co (NYSE:DIS), Hewlett-Packard Company (NYSE:HPQ), American International Group Inc (NYSE:AIG), Honeywell International Inc (NYSE:HON), Ford Motor Co (NYSE:F), VMware Inc (NYSE:VMW), and Halliburton Company (NYSE:HAL). We think a portfolio of the 20 stocks that insider and hedge funds love will provide enough diversification for investors. Our research has shown that these stocks managed to beat the market on the average.



Disclosure: I am long CHK.

Source: 20 Stocks Insiders And Hedge Funds Love The Most