Enersis S.A. (ADR) (NYSE:ENI) investors should pay attention to an increase in activity from the world’s largest hedge funds recently.
In today’s marketplace, there are plenty of metrics investors can use to track stocks. Some of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outpace the S&P 500 by a healthy margin (see just how much).
Just as beneficial, bullish insider trading sentiment is a second way to break down the stock market universe. There are lots of reasons for an executive to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this strategy if piggybackers know what to do (learn more here).
Now, it’s important to take a glance at the recent action regarding Enersis S.A. (ADR) (NYSE:ENI).
How are hedge funds trading Enersis S.A. (ADR) (NYSE:ENI)?
At the end of the first quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 8% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings meaningfully.
Of the funds we track, AQR Capital Management, managed by Cliff Asness, holds the biggest position in Enersis S.A. (ADR) (NYSE:ENI). AQR Capital Management has a $25.5 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Balyasny Asset Management, managed by Dmitry Balyasny, which held a $15.2 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Jim Simons’s Renaissance Technologies, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the biggest position in Enersis S.A. (ADR) (NYSE:ENI). Balyasny Asset Management had 15.2 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $0.8 million investment in the stock during the quarter. The other funds with brand new ENI positions are Jacob Gottlieb’s Visium Asset Management and Cliff Asness’s AQR Capital Management.
What have insiders been doing with Enersis S.A. (ADR) (NYSE:ENI)?
Insider buying is most useful when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time period, Enersis S.A. (ADR) (NYSE:ENI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns demonstrated by the aforementioned tactics, retail investors must always watch hedge fund and insider trading sentiment, and Enersis S.A. (ADR) (NYSE:ENI) applies perfectly to this mantra.