BPZ Resources Inc (NYSE:BPZ) was in 7 hedge funds' portfolio at the end of December. BPZ investors should pay attention to a decrease in activity from the world's largest hedge funds recently. There were 7 hedge funds in our database with BPZ holdings at the end of the previous quarter.
To most investors, hedge funds are perceived as unimportant, outdated financial vehicles of yesteryear. While there are greater than 8000 funds in operation at present, we at Insider Monkey hone in on the moguls of this club, close to 450 funds. Most estimates calculate that this group oversees the lion's share of all hedge funds' total asset base, and by watching their best picks, we have brought to light a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).
Equally as key, positive insider trading activity is a second way to parse down the investments you're interested in. As the old adage goes: there are many stimuli for an insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).
Now, we're going to take a peek at the recent action regarding BPZ Resources Inc (NYSE:BPZ).
At year's end, a total of 7 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedgies' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably.
Seeing as BPZ Resources Inc (NYSE:BPZ) has faced bearish sentiment from hedge fund managers, it's safe to say that there exists a select few hedge funds that elected to cut their full holdings in Q4. At the top of the heap, Roberto Mignone's Bridger Management dropped the largest investment of the 450+ funds we track, comprising about $0.5 million in stock.. Steven Cohen's fund, SAC Capital Advisors, also said goodbye to its stock, about $0 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity, especially when it's bullish, is best served when the company we're looking at has experienced transactions within the past 180 days. Over the last half-year time period, BPZ Resources Inc (NYSE:BPZ) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to BPZ Resources Inc (NYSE:BPZ). These stocks are ZaZa Energy Corp (NASDAQ:ZAZA), Hugoton Royalty Trust (NYSE:HGT), TransAtlantic Petroleum Ltd (NYSEAMEX:TAT), Eca Marcellus Trust I (NYSE:ECT), and MV Oil Trust (NYSE:MVO). This group of stocks belong to the oil & gas drilling & exploration industry and their market caps resemble BPZ's market cap.