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Do Hedge Funds and Insiders Love PBF Energy Inc (PBF)?

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Now, according to many investors, hedge funds are viewed as bloated, outdated investment tools of a period lost to current times. Although there are more than 8,000 hedge funds with their doors open today, Insider Monkey aim at the leaders of this group, close to 525 funds. It is widely held that this group oversees most of all hedge funds’ total assets, and by keeping an eye on their best equity investments, we’ve determined a number of investment strategies that have historically beaten the S&P 500. 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 began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).

Just as useful, bullish insider trading sentiment is a second way to look at the world of equities. Obviously, there are plenty of incentives for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this strategy if investors know where to look (learn more here).

Furthermore, let’s analyze the newest info surrounding PBF Energy Inc (NYSE:PBF).

PBF Energy Inc (NYSE:PBF)

Hedge fund activity in PBF Energy Inc (NYSE:PBF)

At Q2’s end, a total of 13 of the hedge funds we track were bullish in this stock, a change of -41% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes meaningfully.

When using filings from the hedgies we track, Robert Joseph Caruso’s Select Equity Group had the most valuable position in PBF Energy Inc (NYSE:PBF), worth close to $81.5 million, comprising 1.1% of its total 13F portfolio. Sitting at the No. 2 spot is Barry Rosenstein of JANA Partners, with a $57.8 million position; 0.8% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Scott McLellan’s Marble Arch Investments, D. E. Shaw’s D E Shaw and Michael Lowenstein’s Kensico Capital.

Due to the fact PBF Energy Inc (NYSE:PBF) has faced a fall in interest from the top-tier hedge fund industry, it’s easy to see that there was a specific group of hedgies that slashed their entire stakes in Q1. It’s worth mentioning that Paul Reeder and Edward Shapiro’s PAR Capital Management cut the largest investment of the 450+ funds we key on, valued at an estimated $23 million in stock, and Malcolm Fairbairn of Ascend Capital was right behind this move, as the fund dropped about $22.2 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 9 funds in Q1.

How are insiders trading PBF Energy Inc (NYSE:PBF)?

Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has seen transactions within the past half-year. Over the last six-month time period, PBF Energy Inc (NYSE:PBF) has experienced zero unique insiders buying, and zero 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 PBF Energy Inc (NYSE:PBF). These stocks are World Fuel Services Corporation (NYSE:INT), CVR Energy, Inc. (NYSE:CVI), Western Refining, Inc. (NYSE:WNR), Sinopec Shanghai Petrochemical Co. (ADR) (NYSE:SHI), and InterOil Corporation (USA) (NYSE:IOC). This group of stocks belong to the oil & gas refining & marketing industry and their market caps are similar to PBF’s market cap.

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