Fund Managers Thinking Alike On Verizon

At Holdings Channel , we have reviewed the latest batch of the 24 most recent 13-F filings for the 06/30/2014 reporting period, and noticed that Verizon Communications (Symbol: VZ) was held by 16 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.

Before we proceed, it is important to point out that 13-F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13-F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen .

Having given that caveat, we believe that looking at groups of 13-F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in VZ positions, for this latest batch of 13-F filers:

Fund New Position? Change In Share Count Change In Market Value($ in 1000's)
Thompson Rubinstein Investment Management Inc. OR Existing -50 +$8
French Wolf & Farr Inc. Existing -351 +$7
Lathrop Investment Management Corp Existing +1 +$7
Spirit of America Management Corp NY Existing UNCH +$28
Hoxton Financial Inc. Existing +544 +$40
Heritage Investors Management Corp Existing +3,079 +$638
Barnett & Company Inc. Existing UNCH $UNCH
Neville Rodie & Shaw Inc. Existing -702 +$106
F&V Capital Management LLC NEW +78,356 +$3,833
Fruth Investment Management Existing UNCH +$31
Adams Asset Advisors LLC Existing +9,432 +$626
Cape ANN Savings Bank Existing +2,136 +$124
Personal Capital Advisors Corp Existing UNCH $UNCH
Eagle Asset Management Inc. Existing +48,265 +$2,603
Tradeworx Inc. NEW +5,622 +$275
Hexavest Inc. Existing +47,331 +$5,255
Aggregate Change: +193,663 +$13,581

In terms of shares owned, we count 7 of the above funds having increased existing VZ positions from 03/31/2014 to 06/30/2014, with 3 having decreased their positions and 2 new positions. Worth noting is that Punch & Associates Investment Management Inc. , included in this recent batch of 13-F filers, exited VZ common stock as of 06/30/2014.

Looking beyond these particular funds in this one batch of most recent filers, we tallied up the VZ share count in the aggregate among all of the funds which held VZ at the 06/30/2014 reporting period (out of the 3,692 we looked at in total). We then compared that number to the sum total of VZ shares those same funds held back at the 03/31/2014 period, to see how the aggregate share count held by hedge funds has moved for VZ. We found that between these two periods, funds increased their holdings by 899,975,473 shares in the aggregate, from 1,625,240,110 up to 2,525,215,583 for a share count increase of approximately 55.37%. The overall top three funds holding VZ on 06/30/2014 were:

Fund Shares of VZ Held
1. Vanguard Group Inc. 206,981,034
2. State Street Corp 166,719,084
3. Capital Research Global Investors 157,677,745
4-10 Find out the full Top 10 Hedge Funds Holding VZ

We'll keep following the latest 13-F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13-F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Verizon Communications (Symbol: VZ).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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