Quicksilver Resources Inc (NYSE:KWK) has experienced a decrease in activity from the world’s largest hedge funds of late.
To the average investor, there are many gauges investors can use to monitor Mr. Market. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can trounce the S&P 500 by a very impressive amount (see just how much).
Just as important, positive insider trading activity is a second way to parse down the stock market universe. Obviously, there are many incentives for a bullish insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this strategy if shareholders know where to look (learn more here).
Now, let’s take a look at the latest action surrounding Quicksilver Resources Inc (NYSE:KWK).
How have hedgies been trading Quicksilver Resources Inc (NYSE:KWK)?
At the end of the first quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of -10% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes substantially.
Of the funds we track, SPO Advisory Corp, managed by John H. Scully, holds the largest position in Quicksilver Resources Inc (NYSE:KWK). SPO Advisory Corp has a $56.2 million position in the stock, comprising 0.8% of its 13F portfolio. Sitting at the No. 2 spot is Mason Hawkins of Southeastern Asset Management, with a $55.9 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
Judging by the fact that Quicksilver Resources Inc (NYSE:KWK) has witnessed falling interest from the smart money, logic holds that there was a specific group of hedge funds who sold off their positions entirely last quarter. It’s worth mentioning that David Costen Haley’s HBK Investments said goodbye to the largest stake of the 450+ funds we track, worth about $1 million in stock., and Paul Tudor Jones of Tudor Investment Corp was right behind this move, as the fund cut about $0.2 million worth. These moves are important to note, as total hedge fund interest fell by 1 funds last quarter.
What have insiders been doing with Quicksilver Resources Inc (NYSE:KWK)?
Bullish insider trading is best served when the company in focus has seen transactions within the past six months. Over the latest half-year time frame, Quicksilver Resources Inc (NYSE:KWK) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Quicksilver Resources Inc (NYSE:KWK). These stocks are VAALCO Energy, Inc. (NYSE:EGY), Apco Oil and Gas International Inc (NASDAQ:APAGF), Sandridge Mississippian Trust I (NYSE:SDT), and Triangle Petroleum Corporation (NYSEAMEX:TPLM). This group of stocks belong to the independent oil & gas industry and their market caps match KWK’s market cap.