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Hedge Funds Aren’t Crazy About Cameco Corporation (USA) (NYSE:CCJ) Anymore

Cameco Corporation (USA) (NYSE:CCJ) was in 13 hedge funds’ portfolio at the end of the fourth quarter of 2012. CCJ has seen a decrease in hedge fund interest lately. There were 16 hedge funds in our database with CCJ positions at the end of the previous quarter.

Cameco Corporation (USA) (NYSE:CCJ)

In the 21st century investor’s toolkit, there are many metrics market participants can use to monitor publicly traded companies. A couple of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can beat the S&P 500 by a healthy margin (see just how much).

Just as beneficial, optimistic insider trading activity is a second way to parse down the investments you’re interested in. As the old adage goes: there are lots of reasons for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if shareholders know where to look (learn more here).

With these “truths” under our belt, let’s take a look at the latest action regarding Cameco Corporation (USA) (NYSE:CCJ).

How have hedgies been trading Cameco Corporation (USA) (NYSE:CCJ)?

In preparation for this year, a total of 13 of the hedge funds we track were bullish in this stock, a change of -19% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes considerably.

Of the funds we track, Jeffrey Vinik’s Vinik Asset Management had the largest position in Cameco Corporation (USA) (NYSE:CCJ), worth close to $82 million, comprising 2.4% of its total 13F portfolio. On Vinik Asset Management’s heels is Renaissance Technologies, managed by Jim Simons, which held a $14 million position; 0.3% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Richard Chilton’s Chilton Investment Company, Israel Englander’s Millennium Management and Michael Hintze’s CQS Cayman LP.

Judging by the fact that Cameco Corporation (USA) (NYSE:CCJ) has faced bearish sentiment from hedge fund managers, it’s easy to see that there were a few funds that elected to cut their full holdings last quarter. At the top of the heap, Richard Chilton’s Chilton Investment Company sold off the biggest stake of the 450+ funds we track, totaling about $17 million in stock., and Phill Gross and Robert Atchinson of Adage Capital Management was right behind this move, as the fund sold off about $7 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds last quarter.

How are insiders trading Cameco Corporation (USA) (NYSE:CCJ)?

Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Cameco Corporation (USA) (NYSE:CCJ) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned strategies, retail investors must always monitor hedge fund and insider trading sentiment, and Cameco Corporation (USA) (NYSE:CCJ) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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.

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