Facebook Inc (NASDAQ:FB) has seen some intriguing activity from the smart money of late, and while investors tend to pay attention to other investment indicators first, we at Insider Monkey have found it’s important to watch hedge fund sentiment. Hedge funds’ best small-cap picks have historically beaten the market by 18 percentage points annually for over a decade, and since we started sharing this strategy with the public, it’s up on the S&P 500 by more than 20 percentage points in just six months (see how to use this yourself).
With all of this in mind, we’re going to take a look at the recent action surrounding Facebook Inc (NASDAQ:FB), while also keeping an eye on what corporate insiders have been doing for good measure (learn why here).
Hedge fund activity in Facebook Inc (NASDAQ:FB)
At the end of the fourth quarter, a total of 67 of the hedge funds we track held long positions in this stock, a change of 40 % from the previous quarter. With hedge funds’ sentiment swirling, some notable hedge fund managers were upping their stakes considerably.
D E Shaw increased his stake by a total of 3470%, the largest of the funds we track. Sac Capital Advisors and Arrowstreet Capital were also increasing their holdings, while Clough Capital Partners and Levin Capital Strategies established new positions in the stock.
All in all, Stephen Mandel held the largest position, ahead of peers Steven Cohen, D. E. Shaw, and Jim Simons.
Insider trading activity in Facebook Inc (NASDAQ:FB)
Since the start of 2013, Facebook Inc. has seen 0 insider purchases and 23 insider sales in the month of February 2013.
The latest insider purchase we have on record was a buy of 47,846 shares at an average price of $21.03 a piece. Reed Hastings made this transaction, and now holds 47,846 shares after the move.
Likewise, the most recent insider sale came with Sheryl Sandberg’s transaction of 6,696 shares at an average price of $27.89.
With the results demonstrated by our time-tested strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Facebook Inc (NASDAQ:FB) is no exception.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index.
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