Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Aren’t Crazy About SandRidge Energy Inc. (SD) Anymore

Page 1 of 2

SandRidge Energy Inc. (NYSE:SD) was in 28 hedge funds’ portfolio at the end of March. SD has seen a decrease in support from the world’s most elite money managers recently. There were 31 hedge funds in our database with SD holdings at the end of the previous quarter.

SandRidge Energy Inc. (NYSE:SD)

In the 21st century investor’s toolkit, there are a multitude of gauges market participants can use to monitor stocks. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outpace their index-focused peers by a significant margin (see just how much).

Just as integral, bullish insider trading sentiment is another way to break down the marketplace. There are many motivations for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the useful potential of this tactic if “monkeys” know what to do (learn more here).

Keeping this in mind, it’s important to take a look at the recent action regarding SandRidge Energy Inc. (NYSE:SD).

What have hedge funds been doing with SandRidge Energy Inc. (NYSE:SD)?

Heading into Q2, a total of 28 of the hedge funds we track were bullish in this stock, a change of -10% from the previous quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were upping their stakes meaningfully.

When looking at the hedgies we track, TPG-AXON Management LP, managed by Dinakar Singh, holds the biggest position in SandRidge Energy Inc. (NYSE:SD). TPG-AXON Management LP has a $190.9 million position in the stock, comprising 9.6% of its 13F portfolio. Coming in second is Fairfax Financial Holdings, managed by Prem Watsa, which held a $170.8 million position; the fund has 6.4% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Leon Cooperman’s Omega Advisors, Mark McGoldrick and Jason Maynard’s Mouth Kellett Capital Management and Jonathon Jacobson’s Highfields Capital Management.

Because SandRidge Energy Inc. (NYSE:SD) has experienced declining sentiment from hedge fund managers, we can see that there was a specific group of hedgies that elected to cut their entire stakes in Q1. It’s worth mentioning that Paul Singer’s Elliott Management dumped the largest position of the 450+ funds we key on, comprising close to $35.4 million in call options, and Don Morgan of Brigade Capital was right behind this move, as the fund cut about $9.5 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds in Q1.

Insider trading activity in SandRidge Energy Inc. (NYSE:SD)

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time period, SandRidge Energy Inc. (NYSE:SD) has experienced 2 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to SandRidge Energy Inc. (NYSE:SD). These stocks are EV Energy Partners, L.P. (NASDAQ:EVEP), Enerplus Corp (USA) (NYSE:ERF), Halcon Resources Corp (NYSE:HK), Kodiak Oil & Gas Corp (USA) (NYSE:KOG), and Pengrowth Energy Corp (USA) (NYSE:PGH). This group of stocks are the members of the oil & gas drilling & exploration industry and their market caps resemble SD’s market cap.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!