Now, according to many market players, hedge funds are assumed to be overrated, old financial tools of a forgotten age. Although there are more than 8,000 hedge funds with their doors open today, Insider Monkey aim at the masters of this group, about 525 funds. It is assumed that this group has its hands on the lion's share of the smart money's total assets, and by keeping an eye on their best stock picks, we've unearthed a number of investment strategies that have historically outperformed the S&P 500. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum 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 outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as necessary, optimistic insider trading sentiment is another way to look at the financial markets. Just as you'd expect, there are many stimuli for an insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this tactic if investors understand what to do (learn more here).
Now that that's out of the way, let's discuss the newest info for Cameco Corporation (USA) (NYSE:CCJ).
In preparation for the third quarter, a total of 12 of the hedge funds we track were long in this stock, a change of -20% from the first quarter. With hedgies' capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings considerably.
According to our 13F database, George Soros's Soros Fund Management had the largest call position in Cameco Corporation (USA) (NYSE:CCJ), worth close to $52.9 million, comprising 0.6% of its total 13F portfolio. Coming in second is George Soros of Soros Fund Management, with a $38.7 million position; 0.4% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Phill Gross and Robert Atchinson's Adage Capital Management, Michael Hintze's CQS Cayman LP and Richard L. Haydon's Yield Capital Partners (Y/Cap Management).
Judging by the fact that Cameco Corporation (USA) (NYSE:CCJ) has experienced bearish sentiment from the smart money's best and brightest, logic holds that there lies a certain "tier" of fund managers that slashed their full holdings heading into Q2. At the top of the heap, Jeffrey Vinik's Vinik Asset Management cut the biggest position of all the hedgies we key on, worth an estimated $65.9 million in stock. John A. Levin's fund, Levin Capital Strategies, also said goodbye to its stock, about $7.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 3 funds heading into Q2.
Bullish insider trading is particularly usable when the company we're looking at has seen transactions within the past 180 days. Over the last half-year time period, Cameco Corporation (USA) (NYSE:CCJ) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to Cameco Corporation (USA) (NYSE:CCJ). These stocks are Central Fund of Canada Limited (USA) (NYSEAMEX:CEF), Peabody Energy Corporation (NYSE:BTU), Turquoise Hill Resources Ltd (NYSE:TRQ), Yanzhou Coal Mining Co Ltd (ADR) (NYSE:YZC), and CONSOL Energy Inc. (NYSE:CNX). This group of stocks belong to the industrial metals & minerals industry and their market caps resemble CCJ's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Central Fund of Canada Limited (USA) (NYSEAMEX:CEF)||5||0||0|
|Peabody Energy Corporation (NYSE:BTU)||31||0||0|
|Turquoise Hill Resources Ltd (NYSE:TRQ)||19||0||0|
|Yanzhou Coal Mining Co Ltd (ADR) (NYSE:YZC)||5||0||0|
|CONSOL Energy Inc. (NYSE:CNX)||25||0||0|
Using the returns explained by our tactics, regular investors must always track hedge fund and insider trading activity, and Cameco Corporation (USA) (NYSE:CCJ) shareholders fit into this picture quite nicely.