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Gran Tierra Energy Inc. (NYSEAMEX:GTE): Insiders Are Dumping, Should You?

Is Gran Tierra Energy Inc. (NYSEAMEX:GTE) ready to raly soon? The smart money is getting more bullish. The number of long hedge fund positions went up by 8 lately.

Gran Tierra Energy Inc. (NYSEAMEX:GTE)In the 21st century investor’s toolkit, there are plenty of gauges market participants can use to track the equity markets. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can outclass their index-focused peers by a healthy amount (see just how much).

Equally as beneficial, bullish insider trading sentiment is another way to break down the marketplace. As the old adage goes: there are a variety of reasons for an upper level exec to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this strategy if piggybackers understand where to look (learn more here).

Consequently, we’re going to take a look at the recent action regarding Gran Tierra Energy Inc. (NYSEAMEX:GTE).

What does the smart money think about Gran Tierra Energy Inc. (NYSEAMEX:GTE)?

At year’s end, a total of 16 of the hedge funds we track were bullish in this stock, a change of 100% from the third quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Amber Capital, managed by Joseph Oughourlian and Michel Brogard, holds the most valuable position in Gran Tierra Energy Inc. (NYSEAMEX:GTE). Amber Capital has a $82 million position in the stock, comprising 50.2% of its 13F portfolio. On Amber Capital’s heels is Ranjan Tandon of Libra Advisors, with a $19 million position; the fund has 11.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include John Thiessen’s Vertex One Asset Management, Steven Cohen’s SAC Capital Advisors and Noam Gottesman’s GLG Partners.

Consequently, specific money managers were leading the bulls’ herd. Vertex One Asset Management, managed by John Thiessen, initiated the largest position in Gran Tierra Energy Inc. (NYSEAMEX:GTE). Vertex One Asset Management had 11 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $10 million investment in the stock during the quarter. The other funds with brand new GTE positions are Robert B. Gillam’s McKinley Capital Management, Glenn Russell Dubin’s Highbridge Capital Management, and Mike Vranos’s Ellington.

Insider trading activity in Gran Tierra Energy Inc. (NYSEAMEX:GTE)

Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past 180 days. Over the last half-year time frame, Gran Tierra Energy Inc. (NYSEAMEX:GTE) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

With the results demonstrated by our studies, retail investors should always watch hedge fund and insider trading sentiment, and Gran Tierra Energy Inc. (NYSEAMEX:GTE) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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