With a Side of Insider Buying

Since hedge-fund holdings have been found to outperform the market in certain capacities, and since they can serve as a great fountain of new ideas, we maintain a database of 13F SEC filings as part of our work developing investment strategies. Today, we're focusing on the latest disclosure from billionaire Steve Cohen's SAC Capital Advisors, screening the hedge fund's holdings for stocks that have seen insider buying in the past three months. Here are the five largest such holdings as of the end of March.

One of these is Starbucks (SBUX). Former Defense Secretary Robert Gates, a member of the company board, picked up 3,300 shares in early May at an average price of $60.49. Meanwhile, Starbucks was in the top 10 SAC holdings at the end of the first quarter. The coffee purveyor is certainly growing nicely, with revenue up 11% year over year last quarter, and net income rising at an even higher rate. However, the market price is already including a good deal of future growth, so the stock might not be a good value at this time....331 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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