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Academic studies have shown that insider purchases on average outperform the market over the following 12 month period. The reason that they have an edge over ordinary investors is simple. Corporate insiders usually have more exposure to their company’s performance. They understand their companies better and sometimes even have material non-public information. They will only increase their stakes when they believe that the purchases are very likely to be profitable in the near future.

In this article, we are going to focus on the stocks that insiders and famous fund manager Ken Fisher are bullish on recently. Fisher is the founder of Fisher Asset Management. Over the past 14 years, Fisher’s stock picks only underperformed the market in three years. He beat the market by 24 percentage points in 2009 and 5 percentage points in 2010. Below we compiled a list of stocks that were purchased by at least one insider during the past month and Fisher invested at least $10 million in these stocks at the end of September.

Company Name

Ticker

Value

Activity

Insiders

SCHLUMBERGER

SLB

487247

0%

1

QUALCOMM INC

QCOM

270992

2%

1

HALLIBURTON

HAL

173216

2%

1

CLIFFS NATURAL RES

CLF

66030

2%

1

PERRIGO COMPANY

PRGO

60788

-7%

1

ESTERLINE TECH

ESL

40085

-9%

3

PLEXUS CORP

PLXS

34307

-8%

1

WRIGHT MEDICAL

WMGI

33234

-2%

1

RAYMOND JAMES

RJF

32851

-9%

5

TEXAS INDUSTRIES

TXI

30050

-8%

2

GLACIER BANCORP

GBCI

29112

-7%

1

TRIQUINT SEMI

TQNT

27098

-7%

3

FIRST MIDWEST BANCORP

FMBI

18124

-7%

1

CELGENE CORP

CELG

16182

-7%

2

APPLE INC

AAPL

15038

-2%

1

Schlumberger Ltd. is a supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry. At the end of September, Fisher Asset Management reported to own $487 million worth of SLB shares. Schulumberger reported revenues of $10 billion for the third quarter of 2011, versus $6.8 billion for the third quarter last year.

There was one insider purchase in SLB over the past month. On November 23, Kjell-Erik Oestdahl bought 3730 shares at $67 per share. Currently SLB is trading at around $68.7 per share. Tiger cub Stephen Mandel is bullish about SLB as well. At the end of the third quarter, his Lone Pine Capital disclosed owning $361 million of SLB shares.

Qualcomm Inc. is engaged in designing, manufacturing and marketing digital wireless telecommunications products and services. Fisher had $271 million invested in QCOM at the end of September. For the three months ending September 25, 2011, Qualcomm reported revenues of $4.1 billion, up from the $3.0 billion for the same quarter a year ago.

Over the past month, QCOM was bought by one insider. Francisco Ros purchased 275 shares at $53.7867 on November 28. Ros also bought 200 shares at $49.3167 on September 2. Currently QCOM is trading at $54.94 per share. Stephen Mandel is in favor of QCOM as well. Lone Pine Capital invested $351 million in the stock at the end of September.

Halliburton Co. is an oilfield services firm. The company reported strong third-quarter earnings. For the three months ending September 30, 2011, Halliburton generated revenues of $6.5 billion, up from $4.7 billion for the same period last year. The gross profit of the company also increased from $880 million to $1.4 billion. At the end of the third quarter, Fisher reported to own $173 million of HAL shares.

The stock was bought by one insider during the past month. On November 25, Joseph Andolino bought 2000 shares at $32.59. Now the stock is trading at $34.13 per share. Besides Fisher, Jim Simons is also bullish about HAL. Over the third quarter, Simons’ Renaissance Technologies initiated a brand new $94 million position in HAL.

Other large-cap stocks that both Fisher and corporate insiders are in favor of include Cliffs Natural Resources Inc, Perrigo Company, Celgene Corp, and Apple Inc. We like Fisher. He has a strong track record over the past 14 years. Additionally, academic studies have indicated that investors can outperform the market in the long term simply by imitating the corporate insiders. Therefore, we urge investors to focus on the stock picks of Fisher and insiders, and conduct some in-depth research about these stocks.

Source: Ken Fisher And Insiders Are Bullish On These 15 Stocks