To the average investor, there are dozens of methods shareholders can use to analyze stocks. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outperform the S&P 500 by a superb amount (see just how much).
Just as integral, positive insider trading sentiment is another way to break down the world of equities. Just as you’d expect, there are a number of motivations for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Many academic studies have demonstrated the useful potential of this strategy if piggybackers know what to do (learn more here).
With these “truths” under our belt, let’s take a gander at the latest action surrounding Cloud Peak Energy Inc. (NYSE:CLD).
Hedge fund activity in Cloud Peak Energy Inc. (NYSE:CLD)
Heading into 2013, a total of 16 of the hedge funds we track were long in this stock, a change of -6% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially.
Of the funds we track, Impala Asset Management, managed by Robert Bishop, holds the largest position in Cloud Peak Energy Inc. (NYSE:CLD). Impala Asset Management has a $50 million position in the stock, comprising 2.6% of its 13F portfolio. Coming in second is Third Avenue Management, managed by Martin Whitman, which held a $38 million position; 2.6% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Kerr Neilson’s Platinum Asset Management, John Burbank’s Passport Capital and Israel Englander’s Millennium Management.
Due to the fact that Cloud Peak Energy Inc. (NYSE:CLD) has experienced bearish sentiment from the aggregate hedge fund industry, we can see that there exists a select few fund managers who sold off their positions entirely heading into 2013. It’s worth mentioning that Sean Cullinan’s Point State Capital sold off the biggest investment of the 450+ funds we watch, worth close to $23 million in stock.. Charles Clough’s fund, Clough Capital Partners, also said goodbye to its stock, about $7 million worth. These transactions are interesting, as total hedge fund interest dropped by 1 funds heading into 2013.
What do corporate executives and insiders think about Cloud Peak Energy Inc. (NYSE:CLD)?
Insider buying is most useful when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, Cloud Peak Energy Inc. (NYSE:CLD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns exhibited by the aforementioned studies, retail investors should always keep an eye on hedge fund and insider trading activity, and Cloud Peak Energy Inc. (NYSE:CLD) applies perfectly to this mantra.
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