Gulfport Energy Corporation (NASDAQ:GPOR) has experienced an increase in hedge fund interest in recent months.
In the eyes of most investors, hedge funds are seen as underperforming, outdated investment tools of the past. While there are greater than 8000 funds with their doors open at present, we at Insider Monkey choose to focus on the moguls of this club, about 450 funds. It is estimated that this group controls the majority of the hedge fund industry's total capital, and by watching their best equity investments, we have revealed a number of investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).
Just as important, positive insider trading activity is another way to parse down the stock market universe. There are a variety of incentives for an insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this method if piggybackers understand where to look (learn more here).
Now, it's important to take a look at the recent action surrounding Gulfport Energy Corporation (NASDAQ:GPOR).
At the end of the fourth quarter, a total of 20 of the hedge funds we track held long positions in this stock, a change of 82% from one quarter earlier. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings meaningfully.
According to our comprehensive database, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Gulfport Energy Corporation (NASDAQ:GPOR). Citadel Investment Group has a $108 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $72 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Israel Englander's Millennium Management, Charles Clough's Clough Capital Partners and Richard Driehaus's Driehaus Capital.
Consequently, key hedge funds have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, initiated the most valuable position in Gulfport Energy Corporation (NASDAQ:GPOR). Citadel Investment Group had 108 million invested in the company at the end of the quarter. Charles Clough's Clough Capital Partners also initiated a $20 million position during the quarter. The following funds were also among the new gpor investors: Sean Cullinan's Point State Capital, Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk's GRT Capital Partners, and Charles Davidson's Wexford Capital.
Insider buying is particularly usable when the company we're looking at has experienced transactions within the past half-year. Over the last 180-day time period, Gulfport Energy Corporation (NASDAQ:GPOR) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
With the returns exhibited by our strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Gulfport Energy Corporation (NASDAQ:GPOR) is no exception.
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