Are you in Chevron Corporation (NYSE:CVX) for the long haul? If not, check out this data. It may change your mind.
If you were to ask many investors, hedge funds are seen as delayed, outdated investment vehicles of a forgotten age. Although there are over 8,000 hedge funds trading in present day, this site focuses on the bigwigs of this group, around 525 funds. It is widely held that this group has its hands on the lion’s share of the smart money’s total capital, and by keeping an eye on their highest performing equity investments, we’ve formulated a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Just as necessary, optimistic insider trading activity is a second way to analyze the investments you’re interested in. There are many incentives for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this method if investors know what to do (learn more here).
Furthermore, we’re going to study the newest info for Chevron Corporation (NYSE:CVX).
What does the smart money think about Chevron Corporation (NYSE:CVX)?
At Q2’s end, a total of 47 of the hedge funds we track were long in this stock, a change of 9% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings meaningfully.
Now, certain bigger names were leading the bulls’ herd. Fisher Asset Management, managed by Ken Fisher, initiated the biggest position in Chevron Corporation (NYSE:CVX). Fisher Asset Management had 423.6 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $275 million investment in the stock during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, Bill Miller’s Legg Mason Capital Management, and D. E. Shaw’s D E Shaw.
Insider trading activity in Chevron Corporation (NYSE:CVX)
Bullish insider trading is best served when the company we’re looking at has experienced transactions within the past half-year. Over the latest half-year time frame, Chevron Corporation (NYSE:CVX) has experienced 1 unique insiders buying, and 6 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Chevron Corporation (NYSE:CVX). These stocks are TOTAL S.A. (ADR) (NYSE:TOT), Exxon Mobil Corporation (NYSE:XOM), BP plc (ADR) (NYSE:BP), Royal Dutch Shell plc (ADR) (NYSE:RDS.B), and PetroChina Company Limited (ADR) (NYSE:PTR). All of these stocks are in the major integrated oil & gas industry and their market caps match CVX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| TOTAL S.A. (ADR) (NYSE:TOT) | 11 | 0 | 0 |
| Exxon Mobil Corporation (NYSE:XOM) | 60 | 1 | 3 |
| BP plc (ADR) (NYSE:BP) | 38 | 0 | 0 |
| Royal Dutch Shell plc (ADR) (NYSE:RDS.B) | 34 | 0 | 0 |
| PetroChina Company Limited (ADR) (NYSE:PTR) | 13 | 0 | 0 |
Using the returns explained by our analyses, regular investors should always pay attention to hedge fund and insider trading sentiment, and Chevron Corporation (NYSE:CVX) shareholders fit into this picture quite nicely.
