Kinder Morgan Management, LLC (KMR): Insiders Are Buying, Should You?

Is Kinder Morgan Management, LLC (NYSE:KMR) a buy, sell, or hold? Money managers are in a bearish mood. The number of long hedge fund bets shrunk by 5 in recent months.

Kinder Morgan Management, LLC (NYSE:KMR)

At the moment, there are a multitude of metrics market participants can use to watch Mr. Market. A pair of the most innovative 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 outclass the broader indices by a superb amount (see just how much).

Just as important, bullish insider trading activity is a second way to parse down the financial markets. Obviously, there are a variety of reasons for an executive to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if investors know what to do (learn more here).

With all of this in mind, we’re going to take a glance at the key action encompassing Kinder Morgan Management, LLC (NYSE:KMR).

Hedge fund activity in Kinder Morgan Management, LLC (NYSE:KMR)

At the end of the fourth quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -42% from one quarter earlier. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes considerably.

When looking at the hedgies we track, Ken Griffin’s Citadel Investment Group had the most valuable position in Kinder Morgan Management, LLC (NYSE:KMR), worth close to $14.3 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by D. E. Shaw of D E Shaw, with a $10.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Richard Driehaus’s Driehaus Capital, John Zaro’s Bourgeon Capital and Brian Bares’s Bares Capital Management.

Judging by the fact that Kinder Morgan Management, LLC (NYSE:KMR) has witnessed falling interest from the smart money, logic holds that there is a sect of hedge funds who were dropping their positions entirely heading into 2013. Intriguingly, Jim Simons’s Renaissance Technologies dropped the largest stake of the “upper crust” of funds we key on, comprising close to $7.3 million in stock.. William Michaelcheck’s fund, Mariner Investment Group, also said goodbye to its stock, about $4.2 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 5 funds heading into 2013.

What have insiders been doing with Kinder Morgan Management, LLC (NYSE:KMR)?

Insider buying is best served when the company we’re looking at has seen transactions within the past six months. Over the latest six-month time frame, Kinder Morgan Management, LLC (NYSE:KMR) has experienced 2 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Kinder Morgan Management, LLC (NYSE:KMR). These stocks are Oneok Partners LP (NYSE:OKS), Magellan Midstream Partners, L.P. (NYSE:MMP), Enbridge Energy Partners, L.P. (NYSE:EEP), Pembina Pipeline Corp (NYSE:PBA), and El Paso Pipeline Partners, L.P. (NYSE:EPB). This group of stocks are in the oil & gas pipelines industry and their market caps match KMR’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Oneok Partners LP (NYSE:OKS) 5 1 0
Magellan Midstream Partners, L.P. (NYSE:MMP) 9 0 1
Enbridge Energy Partners, L.P. (NYSE:EEP) 5 3 0
Pembina Pipeline Corp (NYSE:PBA) 5 0 0
El Paso Pipeline Partners, L.P. (NYSE:EPB) 7 0 0

With the returns demonstrated by our tactics, everyday investors should always watch hedge fund and insider trading sentiment, and Kinder Morgan Management, LLC (NYSE:KMR) is no exception.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!