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Professional Money Managers Gravitate Towards the Mega-Cap Stocks

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SOURCE Abel/Noser

Liquidity Remains in Short Supply for Vast Majority of U.S.-Listed Companies

NEW YORK, April 30, 2014 /PRNewswire/ -- Large investors like large companies, according to a study by brokerage firm Abel/Noser. The analysis, which examined public filings with the Securities and Exchange Commission, showed that institutional investors concentrated their holdings in a small number of highly-liquid, mega-cap stocks during the fourth quarter of 2013.

In fact, professional money managers held nearly one-quarter of their portfolios in just 40 stocks out of the 13,000 listed companies in the U.S. The five most held stocks by institutions were Apple (APPL), Google (GOOG), ExxonMobil (XOM), Microsoft (MSFT) and Wells Fargo (WFC). The analysis was compiled from 13-F filings for the quarter ended December 31, 2013, the most recent quarter for which data is available.

"Nearly five-and-a-half years after the great financial crisis of 2008, liquidity is still king," said Bill Conlin, Abel/Noser's President and Chief Executive Officer. "Despite the run-up in the S&P 500 over the past few years, and even as small-caps trade at more compelling valuations, institutional investors remain skittish about putting money into stocks they can't get in and out of easily. Traders need to be extra vigilant when taking a position in names outside of the top 50."

The 10 Stocks with Largest Institutional Ownership by Value


13-F

Rank

Symbol

Name

Value Held by

Institutions

($000)

Total Value (%)

Cumulative

Value (%)

1

AAPL

Apple

255,339,182

1.63

1.63

2

GOOG

Google

226,050,578

1.44

3.07

3

XOM

ExxonMobil

191,766,057

1.22

4.29

4

MSFT

Microsoft

179,586,666

1.15

5.44

5

WFC

Wells Fargo

158,957,719

1.01

6.45

6

JNJ

Johnson & Johnson

143,405,909

0.91

7.37

7

JPM

JP Morgan

137,923,973

0.88

8.25

8

GE

General Electric

131,471,581

0.84

9.09

9

CVX

Chevron

130,791,189

0.83

9.92

10

PFE

Pfizer

115,089,472

0.73

10.65

Sources: Abel/Noser; SEC

Companies with large institutional ownership accounted for a disproportionate share of the market's trading volumes. In March, the 600 most liquid stocks represented 75% of all the dollars that traded daily during that time period.

The 10 Stocks with Highest Average Daily Trading Volume by Value (March 1-31, 2014)


13-F

Rank

Symbol

Name

Avg. Daily Trading

Volume ($)

Total Value (%)

Cumulative

Value (%)

1

AAPL

Apple

5,656,544,085

3.50

3.50

2

FB

Facebook

3,730,491,733

2.31

5.81

3

TSLA

Tesla Motors

1,778,433,280

1.09

6.91

4

GOOG

Google

1,686,733,397

1.05

7.96

5

MSFT

Microsoft

1,410,548,736

0.87

8.83

6

BAC

Bank of America

1,317,697,237

0.81

9.63

7

TWTR

Twitter

1,096,756,416

0.66

10.29

8

XOM

ExxonMobil

1,093,737,813

0.67

10.96

9

NFLX

Netflix

1,090,325,120

0.69

11.65

10

C

Citigroup

1,059,980,053

0.65

12.30

Sources: Abel/Noser; SEC

Retail Investors Like Tech, Consumer Stocks

Abel/Noser also compared the 13-F filings to stock market liquidity during March. A stock with high trading volume but comparatively lower institutional ownership typically indicates that it has a strong following among retail investors. As the table below shows, retail investors last month gravitated towards companies in the technology and consumer industries:

Liquidity Rank

13-F Rank

Symbol

Name

Avg. Daily Trading Volume ($)

Value Held by Institutions ($)

3

346

TSLA

Tesla Motors

1,778,433,280

9,552,816,526

7

210

TWTR

Twitter

1,096,756,416

14,992,286,875

61

709

DDD

3D Systems

341,546,859

4,188,624,760

77

257

KORS

Michael Kors Holdings

315,050,939

12,769,846,046

80

499

ABX

Barrick Gold

302,157,248

6,362,603,962

84

1,301

JCP

JC Penney

295,979,925

1,852,159,148

94

1,039

FSLR

First Solar

274,149,499

2,651,987,848

98

1,531

SCTY

Solar City

266,401,381

1,338,280,559

99

337

GMCR

Keurig Green Mountain

264,597,232

9,819,363,576

103

356

RIG

Transocean

261,124,672

9,245,622,479

Sources: Abel/Noser; SEC

"Retail investors, following the advice of Warren Buffett, have long been known to buy companies they know and understand. Abel/Noser's survey shows that trend is in no danger of slowing down," said Conlin. "The stocks with strong retail interest feature well-known, recognizable brands in industries that the average person comes into contact with on a daily basis. The one exception, Transocean, an offshore driller, is drawing increased interest from income-focused investors because of its strong dividend."

Full Liquidity Reporting is available for a small annual subscription price. Please contact info@AbelNoser.com or visit us at www.abelnoser.com.

About Abel/Noser Corp.
Abel/Noser Is one of the oldest and largest independent agency brokerages providing a range of tools and services for institutional sponsors and investment managers. Abel/Noser  offers comprehensive solutions and analytics throughout the pre-trade, execution and post-trade cycle, including Transaction Cost Analysis (TCA), domestic and international commission recapture for equities and fixed income, transition management, liquidity analysis and customized algorithms. Founded in 1975 and headquartered in New York, Abel/Noser is a member of the NYSE, FINRA and SIPC.

About Abel/Noser Solutions
A sister company to Abel/Noser, Abel Noser Solutions was launched in 2007 to pioneer new trading methods, and to provide broker-neutral pre-trade, real-time and post-trade tools to institutional investors. Each day the company collects data from over 500 firms, and records trading data for over 20,000 stocks that trade on over 100 exchanges to provide one of the most comprehensive views of the industry. Clients receive actionable analysis at every point in the trade lifecycle, and on average pay commissions that are 44% lower than industry benchmarks.

Contact:
Brad Nelson
KCSA Strategic Communications
212-896-1217
bnelson@kcsa.com

©2012 PR Newswire. All Rights Reserved.

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