Do Hedge Funds and Insiders Love ALLETE Inc (ALE)?

Page 1 of 2

ALLETE Inc (NYSE:ALE) has experienced a decrease in support from the world’s most elite money managers recently.

To most investors, hedge funds are seen as unimportant, outdated financial tools of the past. While there are over 8000 funds with their doors open today, we at Insider Monkey choose to focus on the crème de la crème of this club, about 450 funds. It is estimated that this group controls the lion’s share of the smart money’s total asset base, and by monitoring their best investments, we have determined a number of investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a 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 (check out a sample of our picks).

Just as important, bullish insider trading sentiment is a second way to parse down the marketplace. Just as you’d expect, there are plenty of motivations for an executive to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).

Now, it’s important to take a peek at the key action surrounding ALLETE Inc (NYSE:ALE).

What does the smart money think about ALLETE Inc (NYSE:ALE)?

Heading into Q2, a total of 6 of the hedge funds we track were long in this stock, a change of -25% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly.

ALLETE Inc (NYSE:ALE)According to our comprehensive database, Phill Gross and Robert Atchinson’s Adage Capital Management had the most valuable position in ALLETE Inc (NYSE:ALE), worth close to $61.3 million, accounting for 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Bernard Horn of Polaris Capital Management, with a $51.5 million position; the fund has 3% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Chuck Royce’s Royce & Associates, Mario Gabelli’s GAMCO Investors and Ken Griffin’s Citadel Investment Group.

Due to the fact that ALLETE Inc (NYSE:ALE) has witnessed a declination in interest from the entirety of the hedge funds we track, logic holds that there is a sect of fund managers that slashed their entire stakes in Q1. At the top of the heap, D. E. Shaw’s D E Shaw dropped the biggest stake of the 450+ funds we key on, valued at close to $0.6 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $0.3 million worth. These moves are important to note, as total hedge fund interest dropped by 2 funds in Q1.

What have insiders been doing with ALLETE Inc (NYSE:ALE)?

Insider buying is most useful when the company in question has seen transactions within the past six months. Over the last half-year time period, ALLETE Inc (NYSE:ALE) has experienced zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to ALLETE Inc (NYSE:ALE). These stocks are MGE Energy, Inc. (NASDAQ:MGEE), Vectren Corporation (NYSE:VVC), NorthWestern Corp (NYSE:NWE), Avista Corp (NYSE:AVA), and PNM Resources, Inc. (NYSE:PNM). This group of stocks are the members of the diversified utilities industry and their market caps match ALE’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 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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!