A Look at What the Big Boys Have Been Buying

Hedge funds and other notable investors must file with the Securities and Exchange Commission when they take a large position in a stock, and then again when they significantly increase or decrease that position. It allows investors to track these filings and to search for investment ideas from these top managers, which make sense on their own merits. Here are five large recent purchases by hedge funds:

1. Jeffrey Smith's Starboard Value now owns more than 10% of the outstanding shares of Office Depot (ODP) following some large purchases this month. The stock climbed some 7% on the announcement, but still trades at less than 7x trailing earnings, as investors are skeptical that the market can support a variety of brick-and-mortar office supply stores alongside Internet players. Last quarter, for example, the company reported a steeper loss than analysts had expected. The sell side expects only $0.08 per share in earnings for 2013, which implies a forward price-to-earnings multiple of 33x....424 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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