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Do Hedge Funds and Insiders Love Teekay Corporation (TK)?

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Teekay Corporation (NYSE:TK) was in 15 hedge funds’ portfolio at the end of March. TK shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately. There were 16 hedge funds in our database with TK positions at the end of the previous quarter.

In the eyes of most stock holders, hedge funds are viewed as worthless, old investment vehicles of the past. While there are more than 8000 funds in operation today, we choose to focus on the masters of this club, around 450 funds. It is estimated that this group controls the majority of all hedge funds’ total asset base, and by paying attention to their best stock picks, we have formulated a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat 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 23.3 percentage points in 8 months (check out a sample of our picks).

Just as important, bullish insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are lots of motivations for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this tactic if you know what to do (learn more here).

Now, we’re going to take a glance at the key action encompassing Teekay Corporation (NYSE:TK).

How have hedgies been trading Teekay Corporation (NYSE:TK)?

In preparation for this quarter, a total of 15 of the hedge funds we track held long positions in this stock, a change of -6% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.

Teekay Corporation (NYSE:TK)According to our comprehensive database, Eric Mindich’s Eton Park Capital had the largest call position in Teekay Corporation (NYSE:TK), worth close to $179.8 million, comprising 3.6% of its total 13F portfolio. The second largest stake is held by Magnetar Capital, managed by Alec Litowitz and Ross Laser, which held a $93.2 million position; the fund has 3% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Jacob Doft’s Highline Capital Management, Barry Rosenstein’s JANA Partners and Quincy Lee’s Ancient Art (Teton Capital).

Since Teekay Corporation (NYSE:TK) has experienced bearish sentiment from the smart money, it’s safe to say that there was a specific group of money managers that elected to cut their entire stakes last quarter. It’s worth mentioning that Christian Leone’s Luxor Capital Group cut the biggest investment of all the hedgies we key on, worth an estimated $71.2 million in stock.. Kenney Y. Oh’s fund, SeaStone Capital Management, also sold off its stock, about $24.1 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 1 funds last quarter.

How are insiders trading Teekay Corporation (NYSE:TK)?

Insider trading activity, especially when it’s bullish, is most useful when the company in focus has seen transactions within the past half-year. Over the latest six-month time frame, Teekay Corporation (NYSE:TK) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Teekay Corporation (NYSE:TK). These stocks are Golar LNG Partners LP (NASDAQ:GMLP), Golar LNG Limited (USA) (NASDAQ:GLNG), Teekay LNG Partners L.P. (NYSE:TGP), Teekay Offshore Partners L.P. (NYSE:TOO), and Tidewater Inc. (NYSE:TDW). This group of stocks belong to the shipping industry and their market caps resemble TK’s market cap.

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