Plains Exploration & Production Company (NYSE:PXP): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Plains Exploration & Production Company (NYSE:PXP) investors should pay attention to an increase in hedge fund sentiment lately.

In the eyes of most stock holders, hedge funds are viewed as unimportant, old investment tools of years past. While there are more than 8000 funds with their doors open at the moment, we choose to focus on the moguls of this group, close to 450 funds. Most estimates calculate that this group controls the majority of all hedge funds’ total capital, and by watching their highest performing stock picks, we have unsheathed a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Equally as key, positive insider trading activity is a second way to break down the investments you’re interested in. As the old adage goes: there are a number of incentives for a bullish insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if “monkeys” understand what to do (learn more here).

With all of this in mind, we’re going to take a peek at the recent action surrounding Plains Exploration & Production Company (NYSE:PXP).

How are hedge funds trading Plains Exploration & Production Company (NYSE:PXP)?

At year’s end, a total of 37 of the hedge funds we track were long in this stock, a change of 19% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, John Paulson’s Paulson & Co had the largest position in Plains Exploration & Production Company (NYSE:PXP), worth close to $601 million, accounting for 3.7% of its total 13F portfolio. Sitting at the No. 2 spot is Robert Emil Zoellner of Alpine Associates, with a $178 million position; 3.7% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Sean Cullinan’s Point State Capital, and D. E. Shaw’s D E Shaw.

As one would reasonably expect, key money managers were breaking ground themselves. Paulson & Co, managed by John Paulson, established the most outsized position in Plains Exploration & Production Company (NYSE:PXP). Paulson & Co had 601 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also made a $178 million investment in the stock during the quarter. The other funds with new positions in the stock are Matthew Halbower’s Pentwater Capital Management, James Dinan’s York Capital Management, and George Soros’s Soros Fund Management.

Insider trading activity in Plains Exploration & Production Company (NYSE:PXP)

Insider buying is particularly usable when the company in focus has experienced transactions within the past six months. Over the last 180-day time period, Plains Exploration & Production Company (NYSE:PXP) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the returns exhibited by our strategies, retail investors must always watch hedge fund and insider trading activity, and Plains Exploration & Production Company (NYSE:PXP) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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.

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

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

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 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!