AbbVie Inc (NYSE:ABBV) investors should be aware of an increase in activity from the world’s largest hedge funds of late. ABBV was in 81 hedge funds’ portfolio at the end of the third quarter of 2014. There were 61 hedge funds in our database with ABBV holdings at the end of the previous quarter. Respected fund managers such as Conan Laughlin, Zach Schreiber, and John Paulson initiated new positions in the stock recently. On the other hand, Adage Capital and Miura Global sold out of their holdings. Should we pay attention to hedge fund moves in the stocks that are in our portfolio?
In the eyes of most traders, hedge funds are viewed as underperforming, outdated financial vehicles of years past. While there are more than 8000 funds in operation today, Experts at hedge fund tracking site Insider Monkey choose to focus on the masters of this group, around 700 funds. These hedge fund managerscontrol most of the hedge fund industry’s total capital, and by keeping track of their matchless picks, Insider Monkey has unearthed a number of investment strategies that have historically outrun the broader indices. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in their back tests.
0, let’s take a look at the recent action surrounding AbbVie Inc (NYSE:ABBV).
What have hedge funds been doing with AbbVie Inc (NYSE:ABBV)?
Heading into Q4, a total of 81 of the hedge funds tracked by Insider Monkey were long in this stock, a change of 33% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes substantially.
Of the funds tracked by Insider Monkey, OZ Management, managed by Daniel S. Och, holds the most valuable position in AbbVie Inc (NYSE:ABBV). OZ Management has a $885.6 million position in the stock, comprising 2.6% of its 13F portfolio. The second most bullish hedge fund manager is John Paulson of Paulson & Co, with a $750.9 million position; 3.1% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Andreas Halvorsen’s Viking Global, Zach Schreiber’s Point State Capital and Samuel Isaly’s OrbiMed Advisors.
Consequently, key hedge funds have been driving this bullishness. Paulson & Co, managed by John Paulson, established the most valuable position in AbbVie Inc (NYSE:ABBV). Paulson & Co had 750.9 million invested in the company at the end of the quarter. Andreas Halvorsen’s Viking Global also made a $622 million investment in the stock during the quarter. The other funds with new positions in the stock are Zach Schreiber’s Point State Capital, Stephen Mandel’s Lone Pine Capital, and Conan Laughlin’s North Tide Capital.