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.

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 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

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

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!