Hedge Funds Are Crazy About James River Coal Company (JRCC)

Page 1 of 2

Is James River Coal Company (NASDAQ:JRCC) a first-rate investment now? Prominent investors are buying. The number of bullish hedge fund bets inched up by 5 lately.

According to most market participants, hedge funds are assumed to be slow, outdated financial tools of years past. While there are over 8000 funds with their doors open today, we hone in on the upper echelon of this club, about 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total asset base, and by monitoring their highest performing investments, we have determined a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 24 percentage points in 7 months (explore the details and some picks here).

James River Coal Company (NASDAQ:JRCC)Just as important, positive insider trading sentiment is a second way to break down the world of equities. Obviously, there are a variety of motivations for an insider to cut shares of his or her company, but just one, very simple reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this strategy if piggybackers know where to look (learn more here).

With these “truths” under our belt, it’s important to take a gander at the key action surrounding James River Coal Company (NASDAQ:JRCC).

How have hedgies been trading James River Coal Company (NASDAQ:JRCC)?

At the end of the fourth quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of 100% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes considerably.

According to our comprehensive database, Ascend Capital, managed by Malcolm Fairbairn, holds the largest position in James River Coal Company (NASDAQ:JRCC). Ascend Capital has a $1.1 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Ascend Capital’s heels is Millennium Management, managed by Israel Englander, which held a $0.9 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include Cliff Asness’s AQR Capital Management, Randall Smith’s Alden Global Capital and Ken Griffin’s Citadel Investment Group.

As aggregate interest increased, some big names have jumped into James River Coal Company (NASDAQ:JRCC) headfirst. Millennium Management, managed by Israel Englander, created the most outsized position in James River Coal Company (NASDAQ:JRCC). Millennium Management had 0.9 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also initiated a $0.8 million position during the quarter. The following funds were also among the new JRCC investors: Randall Smith’s Alden Global Capital, D. E. Shaw’s D E Shaw, and Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s GRT Capital Partners.

Insider trading activity in James River Coal Company (NASDAQ:JRCC)

Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past 180 days. Over the last six-month time period, James River Coal Company (NASDAQ:JRCC) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to James River Coal Company (NASDAQ:JRCC). These stocks are Revett Minerals Inc ADR (NYSEAMEX:RVM) and Uranium Resources, Inc. (NASDAQ:URRE). This group of stocks are the members of the industrial metals & minerals industry and their market caps resemble JRCC’s market cap.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!