DryShips Inc. (DRYS): Are Hedge Funds Right About This Stock?

Page 1 of 2

Do you follow DryShips Inc. (NASDAQ:DRYS)?

At the moment, there are dozens of metrics investors can use to watch their holdings. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outperform their index-focused peers by a healthy amount (see just how much).

Just as crucial, optimistic insider trading activity is a second way to analyze the investments you’re interested in. As the old adage goes: there are many reasons for an executive to downsize shares of his or her company, but only one, very simple reason why they would buy. Several academic studies have demonstrated the valuable potential of this strategy if piggybackers know what to do (learn more here).

Now that that’s out of the way, we’re going to study the recent info surrounding DryShips Inc. (NASDAQ:DRYS).

How are hedge funds trading DryShips Inc. (NASDAQ:DRYS)?

At the end of the second quarter, a total of 9 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.

DryShips Inc. (NASDAQ:DRYS)

According to our 13F database, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital had the biggest position in DryShips Inc. (NASDAQ:DRYS), worth close to $76.7 million, accounting for 3.2% of its total 13F portfolio. The second largest stake is held by Israel Englander of Millennium Management, with a $7.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Richard Chilton’s Chilton Investment Company, Don Morgan’s Brigade Capital and Ken Griffin’s Citadel Investment Group.

As DryShips Inc. (NASDAQ:DRYS) has experienced declining interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedgies that elected to cut their full holdings at the end of the second quarter. Interestingly, Jim Simons’s Renaissance Technologies said goodbye to the largest investment of all the hedgies we watch, valued at an estimated $2.9 million in stock, and Michael Hintze of CQS Cayman LP was right behind this move, as the fund sold off about $1.7 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Insider trading activity in DryShips Inc. (NASDAQ:DRYS)

Insider buying is best served when the company we’re looking at has seen transactions within the past 180 days. Over the last half-year time period, DryShips Inc. (NASDAQ:DRYS) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to DryShips Inc. (NASDAQ:DRYS). These stocks are Capital Product Partners L.P. (NASDAQ:CPLP), Alexander & Baldwin Holdings Inc (NYSE:MATX), GasLog Ltd (NYSE:GLOG), Diana Shipping Inc. (NYSE:DSX), and Navios Maritime Partners L.P. (NYSE:NMM). This group of stocks belong to the shipping industry and their market caps match DRYS’s market cap.

Page 1 of 2
Comments
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

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!