Is Tenneco Inc (NYSE:TEN) the right pick for your portfolio? Hedge funds are in a bullish mood. The number of bullish hedge fund bets went up by 1 in recent months.
To the average investor, there are plenty of indicators shareholders can use to track Mr. Market. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can outpace the broader indices by a healthy margin (see just how much).
Just as key, bullish insider trading sentiment is another way to parse down the marketplace. Just as you’d expect, there are plenty of reasons for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this tactic if investors know what to do (learn more here).
With these “truths” under our belt, we’re going to take a glance at the latest action surrounding Tenneco Inc (NYSE:TEN).
Hedge fund activity in Tenneco Inc (NYSE:TEN)
At year’s end, a total of 18 of the hedge funds we track were long in this stock, a change of 6% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, Iridian Asset Management, managed by David Cohen and Harold Levy, holds the biggest position in Tenneco Inc (NYSE:TEN). Iridian Asset Management has a $105 million position in the stock, comprising 1.7% of its 13F portfolio. The second largest stake is held by Mario Gabelli of GAMCO Investors, with a $36 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Phill Gross and Robert Atchinson’s Adage Capital Management, Ric Dillon’s Diamond Hill Capital and Steven Cohen’s SAC Capital Advisors.
As industrywide interest jumped, key money managers were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the most valuable position in Tenneco Inc (NYSE:TEN). Adage Capital Management had 33 million invested in the company at the end of the quarter. David Tepper’s Appaloosa Management LP also initiated a $4 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Israel Englander’s Catapult Capital Management, and SAC Subsidiary’s Sigma Capital Management.
What do corporate executives and insiders think about Tenneco Inc (NYSE:TEN)?
Bullish insider trading is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time frame, Tenneco Inc (NYSE:TEN) has experienced zero unique insiders buying, and 12 insider sales (see the details of insider trades here).
With the results shown by our tactics, everyday investors must always monitor hedge fund and insider trading sentiment, and Tenneco Inc (NYSE:TEN) is no exception.
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.