Hedge Funds Are Dumping Rentech, Inc. (RTK)

Page 1 of 2

Is Rentech, Inc. (NYSEAMEX:RTK) ready to rally soon? Money managers are taking a pessimistic view. The number of long hedge fund bets decreased by 7 lately.

Rentech, Inc. (NYSEAMEX:RTK)

To the average investor, there are plenty of metrics market participants can use to track the equity markets. Two of the most underrated 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 top money managers can outperform the S&P 500 by a healthy amount (see just how much).

Equally as key, positive insider trading activity is another way to break down the stock market universe. There are plenty of incentives for an executive to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this tactic if shareholders understand what to do (learn more here).

With all of this in mind, let’s take a glance at the latest action surrounding Rentech, Inc. (NYSEAMEX:RTK).

How have hedgies been trading Rentech, Inc. (NYSEAMEX:RTK)?

At the end of the first quarter, a total of 15 of the hedge funds we track held long positions in this stock, a change of -32% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably.

When looking at the hedgies we track, Peter S. Park’s Park West Asset Management had the most valuable position in Rentech, Inc. (NYSEAMEX:RTK), worth close to $23.6 million, accounting for 2.7% of its total 13F portfolio. On Park West Asset Management’s heels is Renaissance Technologies, managed by Jim Simons, which held a $21.1 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include Bart Baum’s Ionic Capital Management, John W. Rogers’s Ariel Investments and Christopher Pucillo’s Solus Alternative Asset Management.

Due to the fact that Rentech, Inc. (NYSEAMEX:RTK) has experienced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers that slashed their full holdings in Q1. Intriguingly, Neil Chriss’s Hutchin Hill Capital cut the largest investment of all the hedgies we monitor, comprising close to $7.9 million in stock., and Brett Hendrickson of Nokomis Capital was right behind this move, as the fund cut about $5.6 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 7 funds in Q1.

What do corporate executives and insiders think about Rentech, Inc. (NYSEAMEX:RTK)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has experienced transactions within the past half-year. Over the latest 180-day time frame, Rentech, Inc. (NYSEAMEX:RTK) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Rentech, Inc. (NYSEAMEX:RTK). These stocks are A. Schulman Inc (NASDAQ:SHLM), LSB Industries, Inc. (NYSE:LXU), Landec Corporation (NASDAQ:LNDC), Solazyme Inc (NASDAQ:SZYM), and FutureFuel Corp. (NYSE:FF). This group of stocks are in the chemicals – major diversified industry and their market caps match RTK’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!