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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

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!