Part of the philosophy of Stockpickr is to follow in the footsteps of smart people. This could mean a few different things.

First, it could mean piggybacking great investors like Warren Buffett or George Soros. Other times it means buying what the CEOs, employees and directors of a company are buying. These are people who know the intimate details of their companies far better than you or me. The perfect setup is when one of these company insiders or an entire board (in the case of a stock buyback) are buying shares at the same time that some smart savvy investors are as well.

Each Thursday we update the Stockpickr Top 10 Insider Purchases and Buybacks portfolio, featuring the stocks of the week that had either big insider purchases or newly announced buybacks as well as "smart money" accumulating shares.

For instance, Anadarko Petroleum (APC) is in this week's portfolio. The Woodlands, Texas-based company announced a new $5 billion buyback program. The new repurchase amount, which replaces the previous buyback plan, represents about 18% of the company's outstanding common shares.

Anadarko added that it intends to repurchase $600 million worth of shares before the end of 2008, and the rest of the buyback has an expiration date of August 2011. The repurchases will be funded by free cash flow from operations.

Anadarko Chairman and CEO Jim Hackett commented: "Our company's substantial net asset value is not reflected in our stock price. The share repurchase program capitalizes on this opportunity to materially
benefit our shareholders." He continued: "Our capital-efficient portfolio is generating material free cash flow at current prices, enabling us to both increase our capital spending levels and complete the share repurchases over the next three years - all while targeting a debt-to-cap ratio of between 25 and 35 percent."

The oil and natural gas producer reported dismal second-quarter earnings on August 5. During the period, the company earned $23 million, or 5 cents a share, compared with a profit of $1.3 billion, or
$2.81 a share, in the same period last year. Revenue came in at $2.78 billion, down from $4.58 billion in the year ago period. The company explained that losses from hedging related to derivatives substantially
brought down profits.

Despite the poor earnings, Tristone Capital has a buy rating on Anadarko and considers the stock to be one of its top picks. It was bullish on the fact that the buyback was significantly larger than expected and that Anadarko plans to increase capital spending in 2009.

The analysts said: "APC is guiding to increased capital expenditures in '09 most likely to fast-track development of Jubilee and Tonga West, ramp-up onshore U.S. development, as well as pursue follow-on
opportunities from its '08 success." Tristone gave the stock a $118 12-month price target, representing 105% expected return.

We also like to see that Carl Icahn holds a substantial amount of Anadarko in his portfolio, representing 19.5% of the pie. Carl Icahn, like many others in the 1980s, made his billionaire fortune in large part because of financier Michael Milken's junk bonds. He is the owner and/or chairman of many companies. His newest position is Yahoo! (YHOO), in which he opened a 3.5% stake in the company.

Another noteworthy investor buying shares of Anadarko is Ken Fisher. Ken Fisher, son of famous value investor and Buffett inspiration Phil Fisher, is an investing legend now in his own right. He runs the $30 billion Fisher Asset Management, and CXOAdvisory.com ranks him as the No. 1 market pundit out there and has tracked all his market timing calls. His other top picks are Occidental Petroleum (OXY) and ABB (ABB).

So we have a huge new buyback, a top pick rating and two investing legends buying shares of the company. It might be time to take a closer look at Anadarko.

Next on the list is Coach (COH). The maker of high-end hand bags announced that its board of directors authorized the repurchase of up to $1 billion in common stock. The New York-based company plans to complete the buyback by June 26, 2010.

Coach recently completed its previous $1 billion buyback plan, which was initiated in November of 2007. The company repurchased 31.8 million shares at an average cost of $31.42 per share.

Lew Frankfort, chairman and CEO of Coach, said: "The stock repurchase program is designed both to increase economic value for shareholders and to offset share issuances under our employee compensation plans. Coach's strong financial condition allows us to take advantage of opportunities to purchase our securities at attractive prices, particularly considering our excellent long-term outlook."

On July 29, 2008, Coach issued excellent fourth-quarter results. Net income jumped 47% to $213.5 million, or 62 cents a share, from $160.6 million, or 42 cents a share, recorded in the same period last year. Favorable tax gains and a weak dollar helped fuel profit gains. Revenue increased 20% to $718.5 million from $652.1 million in the year-ago period. Even amid the weak U.S. consumer, revenue in North America was better by 18%.

We like to see that Needham Research has a buy rating on Coach. Analyst Christina Chen said: "The luxury consumer continues to spend on trend right handbags as evidenced by the increase in sales of handbags priced over $400 which accounted for 24.0% of US retail sales in F4Q, up from 17.0% last year." She has a $37 price target on the stock.

It's also good to see that the D.E. Shaw Group likes Coach. Since its organization in 1988, the $50 billion firm has earned aninternational reputation for financial innovation and an extraordinarily distinguished staff. The firm's other top plays include Pfizer (PFE) and Johnson & Johnson (JNJ).

Another superstar firm investing in Coach is Renaissance Technologies. This New York-based hedge fund was started by Jim Simons in 1982. Its $5 billion Medallion Fund has averaged 38% annual returns, after fees, since 1989, and is considered in the industry to be the most successful hedge fund. They are also buying Wal-Mart (WMT) and Southern Copper (PCU).

So we have a buyback, impressive earnings, a buy rating and two stellar investment firms into the stock. It may be time to do some more homework on Coach.

And finally, we have BJ's Wholesale (BJ) making this week's list. The discount wholesale club store announced that its board added $200 million to the buyback program. Including the new $200 million authorization, the company now has about $291 million available for repurchase. Since the beginning of 2008, BJ's has bought back 2.4 million shares for about $83 million.

On August 20, the Natick, Mass.-based company reported second-quarter results with net income of $36.5 million, or 61 cents a share, compared with $36.3 million, or 55 cents a share, earned in the same period of 2007. Total revenue for the second quarter reached $2.65 billion, a 17.9% increase from revenue of $2.25 billion in the second quarter of 2007. BJ's experienced a 15.5% surge in comparable club sales, including an 8.1% contribution of gasoline sales.

The company forecasted full-year earnings of $2.10 to $2.20 a share, better than its previous estimate of $2.04 to $2.14. BJ's expects third-quarter sales to grow by 13% to 15%, with same-store sales growing at 6.5% to 8.5%, excluding gasoline.

Adding to the bullish case for BJ's, is that the Citadel Investment Group owns shares. Citadel is a $20 billion Chicago-based hedge fund founded by billionaire trader Kenneth C. Griffin and is one of the world's largest hedge funds. The firm is known for its daily trading volume, which amounts to 1% to 2% of daily trading activity in New York and Tokyo. Some of its other plays are Kroger (KR) and General Dynamics (GD).

We also like to see that SAC Capital Partners is invested in BJ's. SAC Capital Partners is a $12 billion dollar group of hedge funds founded by Steven A. Cohen in 1992. Cohen is regarded by many as the best stock trader ever. His fund contains approximately $3 billion of his own money. While he is known primarily as a short-term trader, in recent years he's been taking longer-term positions. He recently opened a position in Pilgrim's Pride (PPC) while he sold out of Geron Corp (GERN).

So we have a buyback, solid earnings and two superior hedge funds betting on BJ's. That makes for a pretty nice setup.

For more stocks and analysis, check out this week's Top 10 Insider Purchases and Buybacks portfolio at Stockpickr.com.

For the 10 most-recent portfolios, check out:

Top 10 Insider Purchases and Buybacks LVI

Top 10 Insider Purchases and Buybacks LVII

Top 10 Insider Purchases and Buybacks LVIII

Top 10 Insider Purchases and Buybacks LIX

Top 10 Insider Purchases and Buybacks LX

Top 10 Insider Purchases and Buybacks LXI

Top 10 Insider Purchases and Buybacks LXII

Top 10 Insider Purchases and Buybacks LXIII

Top 10 Insider Purchases and Buybacks LXIV

Top 10 Insider Purchases and Buybacks LXV

You can also review Barron's Top Insider Purchases from the prior week and Jim Cramer's "Mad Money" Buybacks.

Posted on Sept. 3, 2008