Berry Petroleum Company (BRY): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Page 1 of 2

Berry Petroleum Company (NYSE:BRY) investors should pay attention to an increase in activity from the world’s largest hedge funds recently.

Berry Petroleum Company (NYSE:BRY)

To most market participants, hedge funds are seen as worthless, old financial tools of years past. While there are more than 8000 funds in operation at the moment, we at Insider Monkey look at the crème de la crème of this club, close to 450 funds. It is estimated that this group controls the majority of all hedge funds’ total asset base, and by paying attention to their highest performing stock picks, we have uncovered a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as important, bullish insider trading activity is a second way to parse down the investments you’re interested in. As the old adage goes: there are plenty of motivations for an insider to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this strategy if piggybackers understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a gander at the key action surrounding Berry Petroleum Company (NYSE:BRY).

How have hedgies been trading Berry Petroleum Company (NYSE:BRY)?

In preparation for this quarter, a total of 17 of the hedge funds we track held long positions in this stock, a change of 113% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.

When looking at the hedgies we track, Andrew Spokes’s Farallon Capital had the most valuable position in Berry Petroleum Company (NYSE:BRY), worth close to $41 million, comprising 0.8% of its total 13F portfolio. The second largest stake is held by Robert Emil Zoellner of Alpine Associates, with a $38 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Jane Mendillo’s Harvard Management Co, David Dreman’s Dreman Value Management and John Overdeck and David Siegel’s Two Sigma Advisors.

As one would reasonably expect, key hedge funds have jumped into Berry Petroleum Company (NYSE:BRY) headfirst. Farallon Capital, managed by Andrew Spokes, created the largest position in Berry Petroleum Company (NYSE:BRY). Farallon Capital had 41 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also initiated a $38 million position during the quarter. The other funds with brand new BRY positions are Jane Mendillo’s Harvard Management Co, John Overdeck and David Siegel’s Two Sigma Advisors, and Michael Doheny’s Freshford Capital Management.

How have insiders been trading Berry Petroleum Company (NYSE:BRY)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest six-month time period, Berry Petroleum Company (NYSE:BRY) has seen zero unique insiders buying, and 11 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Berry Petroleum Company (NYSE:BRY). These stocks are Ultra Petroleum Corp. (NYSE:UPL), Newfield Exploration Co. (NYSE:NFX), Mcmoran Exploration Co (NYSE:MMR), Rosetta Resources Inc. (NASDAQ:ROSE), and Laredo Petroleum Holdings Inc (NYSE:LPI). All of these stocks are in the independent oil & gas industry and their market caps are similar to BRY’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!