Chicago Bridge & Iron Company N.V. (NYSE:CBI): Hedge Funds and Insiders Are Bearish, What Should You Do?

Is Chicago Bridge & Iron Company N.V. (NYSE:CBI) a buy right now? Hedge funds are getting less bullish. The number of long hedge fund positions shrunk by 4 in recent months.

Chicago Bridge & Iron Company N.V. (NYSE:CBI)

According to most market participants, hedge funds are viewed as unimportant, outdated financial tools of yesteryear. While there are greater than 8000 funds in operation at the moment, we choose to focus on the crème de la crème of this club, close to 450 funds. Most estimates calculate that this group has its hands on the majority of the hedge fund industry’s total capital, and by paying attention to their highest performing equity investments, we have come up with a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Just as key, positive insider trading sentiment is a second way to break down the world of equities. Obviously, there are lots of incentives for an executive to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this strategy if you understand what to do (learn more here).

Consequently, let’s take a gander at the key action surrounding Chicago Bridge & Iron Company N.V. (NYSE:CBI).

What does the smart money think about Chicago Bridge & Iron Company N.V. (NYSE:CBI)?

In preparation for this year, a total of 32 of the hedge funds we track held long positions in this stock, a change of -11% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably.

When looking at the hedgies we track, Robert Pitts’s Steadfast Capital Management had the most valuable position in Chicago Bridge & Iron Company N.V. (NYSE:CBI), worth close to $242 million billion, comprising 6.5% of its total 13F portfolio. Coming in second is Balyasny Asset Management, managed by Dmitry Balyasny, which held a $164 million position; 1.5% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include Steven Cohen’s SAC Capital Advisors, Ken Griffin’s Citadel Investment Group and Martin D. Sass’s MD Sass.

Since Chicago Bridge & Iron Company N.V. (NYSE:CBI) has faced declining sentiment from the smart money, we can see that there were a few fund managers that elected to cut their positions entirely at the end of the year. Intriguingly, Howard Guberman’s Gruss Asset Management cut the biggest investment of the 450+ funds we watch, valued at about $27 million in stock., and Jim Chanos of Kynikos was right behind this move, as the fund dumped about $10 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 4 funds at the end of the year.

What do corporate executives and insiders think about Chicago Bridge & Iron Company N.V. (NYSE:CBI)?

Insider purchases made by high-level executives is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time period, Chicago Bridge & Iron Company N.V. (NYSE:CBI) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s studies, everyday investors must always watch hedge fund and insider trading activity, and Chicago Bridge & Iron Company N.V. (NYSE:CBI) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

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!