Duke Energy Corp (NYSE:DUK): Hedge Funds and Insiders Are Bearish, What Should You Do?

Duke Energy Corp (NYSE:DUK) investors should be aware of a decrease in activity from the world’s largest hedge funds lately.

In today’s marketplace, there are many methods shareholders can use to track stocks. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can beat the broader indices by a superb margin (see just how much).

Equally as important, positive insider trading activity is another way to break down the world of equities. There are a number of reasons for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this strategy if investors know where to look (learn more here).

With all of this in mind, it’s important to take a look at the key action encompassing Duke Energy Corp (NYSE:DUK).

What does the smart money think about Duke Energy Corp (NYSE:DUK)?

At year’s end, a total of 20 of the hedge funds we track held long positions in this stock, a change of -20% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.

According to our comprehensive database, Jean-Marie Eveillard’s First Eagle Investment Management had the largest position in Duke Energy Corp (NYSE:DUK), worth close to $121 million, comprising 0.4% of its total 13F portfolio. On First Eagle Investment Management’s heels is Millennium Management, managed by Israel Englander, which held a $48 million position; 2% of its 13F portfolio is allocated to the stock. Some other hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Michael Messner’s Seminole Capital (Investment Mgmt) and Stanley Druckenmiller’s Duquesne Capital.

Seeing as Duke Energy Corp (NYSE:DUK) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of fund managers who sold off their entire stakes heading into 2013. It’s worth mentioning that Clint Carlson’s Carlson Capital cut the biggest position of the “upper crust” of funds we monitor, worth about $46 million in stock., and Phill Gross and Robert Atchinson of Adage Capital Management was right behind this move, as the fund dropped about $24 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 5 funds heading into 2013.

How have insiders been trading Duke Energy Corp (NYSE:DUK)?

Insider purchases made by high-level executives is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time frame, Duke Energy Corp (NYSE:DUK) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned strategies, everyday investors should always watch hedge fund and insider trading sentiment, and Duke Energy Corp (NYSE:DUK) is no exception.

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