Calumet Specialty Products Partners, L.P (CLMT): Hedge Funds Are Bearish and Insiders Are Bullish, What Should You Do?

Page 1 of 2

Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) was in 7 hedge funds’ portfolio at the end of the first quarter of 2013. CLMT investors should pay attention to a decrease in hedge fund interest in recent months. There were 8 hedge funds in our database with CLMT positions at the end of the previous quarter.

To most traders, hedge funds are viewed as slow, old financial vehicles of yesteryear. While there are more than 8000 funds trading at present, we at Insider Monkey hone in on the top tier of this club, about 450 funds. Most estimates calculate that this group controls the lion’s share of all hedge funds’ total asset base, and by watching their best stock picks, we have discovered a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed 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 outclassed the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Calumet Specialty Products Partners, L.P (NASDAQ:CLMT)Just as important, bullish insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are a number of stimuli for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this strategy if shareholders understand where to look (learn more here).

Keeping this in mind, it’s important to take a peek at the recent action regarding Calumet Specialty Products Partners, L.P (NASDAQ:CLMT).

How have hedgies been trading Calumet Specialty Products Partners, L.P (NASDAQ:CLMT)?

At the end of the first quarter, a total of 7 of the hedge funds we track were long in this stock, a change of -13% from the first quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings significantly.

When looking at the hedgies we track, Appaloosa Management LP, managed by David Tepper, holds the largest position in Calumet Specialty Products Partners, L.P (NASDAQ:CLMT). Appaloosa Management LP has a $25 million position in the stock, comprising 0.5% of its 13F portfolio. On Appaloosa Management LP’s heels is Jim Simons of Renaissance Technologies, with a $20.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Matthew Hulsizer’s PEAK6 Capital Management, Paul Marshall and Ian Wace’s Marshall Wace LLP and Matthew Hulsizer’s PEAK6 Capital Management.

Judging by the fact that Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) has faced declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of fund managers that elected to cut their positions entirely last quarter. Interestingly, Richard Driehaus’s Driehaus Capital cut the biggest investment of the 450+ funds we track, comprising an estimated $2.4 million in stock.. Russell Lucas’s fund, Lucas Capital Management, also dumped its stock, about $0.9 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 1 funds last quarter.

What do corporate executives and insiders think about Calumet Specialty Products Partners, L.P (NASDAQ:CLMT)?

Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past half-year. Over the last half-year time period, Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Calumet Specialty Products Partners, L.P (NASDAQ:CLMT). These stocks are BP Prudhoe Bay Royalty Trust (NYSE:BPT), Western Refining, Inc. (NYSE:WNR), World Fuel Services Corporation (NYSE:INT), Northern Tier Energy LP (NYSE:NTI), and Delek US Holdings, Inc. (NYSE:DK). All of these stocks are in the oil & gas refining & marketing industry and their market caps are closest to CLMT’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!