Agnico-Eagle Mines Limited (USA) (NYSE:AEM) was in 20 hedge funds' portfolio at the end of the fourth quarter of 2012. aem has seen a decrease in support from the world's most elite money managers lately. There were 25 hedge funds in our database with aem positions at the end of the previous quarter.
If you'd ask most stock holders, hedge funds are assumed to be slow, old financial tools of the past. While there are greater than 8000 funds with their doors open today, we at Insider Monkey look at the moguls of this club, around 450 funds. It is widely believed that this group controls the majority of the hedge fund industry's total capital, and by tracking their highest performing investments, we have discovered a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced 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 topped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).
Just as integral, bullish insider trading sentiment is a second way to break down the investments you're interested in. Just as you'd expect, there are a variety of incentives for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).
Keeping this in mind, it's important to take a look at the recent action surrounding Agnico-Eagle Mines Limited (USA) (NYSE:AEM).
Heading into 2013, a total of 20 of the hedge funds we track were bullish in this stock, a change of -20% from the previous quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were upping their holdings substantially.
According to our comprehensive database, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the largest position in Agnico-Eagle Mines Limited (USA) (NYSE:AEM). First Eagle Investment Management has a $557 million position in the stock, comprising 2% of its 13F portfolio. Sitting at the No. 2 spot is Jeffrey Vinik of Vinik Asset Management, with a $62 million position; 0% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include John Paulson's Paulson & Co, Jim Simons's Renaissance Technologies and Chuck Royce's Royce & Associates.
Judging by the fact that Agnico-Eagle Mines Limited (USA) (NYSE:AEM) has faced a declination in interest from the smart money, it's easy to see that there was a specific group of money managers that decided to sell off their positions entirely heading into 2013. Interestingly, Ranjan Tandon's Libra Advisors dumped the biggest investment of the 450+ funds we watch, comprising about $16 million in stock., and Charles Clough of Clough Capital Partners was right behind this move, as the fund said goodbye to about $10 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 5 funds heading into 2013.
Insider trading activity, especially when it's bullish, is particularly usable when the primary stock in question has seen transactions within the past six months. Over the last half-year time frame, Agnico-Eagle Mines Limited (USA) (NYSE:AEM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results shown by Insider Monkey's strategies, everyday investors must always monitor hedge fund and insider trading sentiment, and Agnico-Eagle Mines Limited (USA) (NYSE:AEM) is no exception.
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.