Is Pfizer Inc. (NYSE:PFE) the right pick for your portfolio? Overall the number of hedge funds with bullish positions are increasing. The number of long hedge fund bets moved up by 4 recently. PFE was in 91 hedge funds’ portfolio at the end of the third quarter of 2014. There were 87 hedge funds in our database with PFE holdings at the end of the previous quarter. However, it isn’t all good news. RenTech, Kenneth Mario Garschina, and James Dinan dumped their large positions in Pfizer Inc. (NYSE:PFE) recently. Should you pay attention to what hedge funds are doing?
If you’d ask most traders, hedge funds are viewed as unimportant, old financial tools of the past. While there are greater than 8000 funds trading at the moment, hedge fund experts at Insider Monkey look at the crème de la crème of this group, approximately 700 funds. It is estimated that this group of investors control bulk of the hedge fund industry’s total capital, and by paying attention to their top equity investments, Insider Monkey has unearthed various investment strategies that have historically outrun the market. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 18 percentage points per year for a decade in their back tests.
With all of this in mind, we’re going to check out the fresh action surrounding Pfizer Inc. (NYSE:PFE).
Hedge fund activity in Pfizer Inc. (NYSE:PFE)
At the end of the third quarter, a total of 91 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 5% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.
According to hedge fund intelligence website Insider Monkey, Ken Fisher’s Fisher Asset Management had the number one position in Pfizer Inc. (NYSE:PFE), worth close to $937.4 million, amounting to 2% of its total 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $309.2 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Remaining peers that hold long positions comprise D. E. Shaw’s D E Shaw, Ric Dillon’s Diamond Hill Capital and John A. Levin’s Levin Capital Strategies.
Consequently, key money managers have been driving this bullishness. Jabre Capital Partners, managed by Philippe Jabre, initiated the most outsized call position in Pfizer Inc. (NYSE:PFE). Jabre Capital Partners had 88.7 million invested in the company at the end of the quarter. Howard Guberman’s Gruss Asset Management also initiated a $73.9 million position during the quarter. The other funds with brand new PFE positions are Curtis Schenker and Craig Effron’s Scoggin, Charles Clough’s Clough Capital Partners, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.