Quicksilver Resources Inc (KWK): Are Hedge Funds Right About This Stock?: LRR Energy LP (LRE), VAALCO Energy, Inc. (EGY)

Is Quicksilver Resources Inc (NYSE:KWK) a buy right now? Hedge funds are turning less bullish. The number of long hedge fund bets shrunk by 3 in recent months.

Quicksilver Resources Inc (NYSE:KWK)To most market participants, hedge funds are perceived as worthless, old investment tools of the past. While there are more than 8000 funds with their doors open today, we at Insider Monkey choose to focus on the upper echelon of this club, around 450 funds. It is widely believed that this group has its hands on most of the hedge fund industry’s total asset base, and by watching their top stock picks, we have unearthed a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Just as key, bullish insider trading activity is another way to parse down the investments you’re interested in. There are a variety of incentives for a corporate insider to cut shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this method if you understand what to do (learn more here).

Keeping this in mind, let’s take a gander at the recent action encompassing Quicksilver Resources Inc (NYSE:KWK).

Hedge fund activity in Quicksilver Resources Inc (NYSE:KWK)

In preparation for this year, a total of 10 of the hedge funds we track were bullish in this stock, a change of -23% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.

When looking at the hedgies we track, SPO Advisory Corp, managed by John H. Scully, holds the biggest position in Quicksilver Resources Inc (NYSE:KWK). SPO Advisory Corp has a $71 million position in the stock, comprising 1.1% of its 13F portfolio. Coming in second is Southeastern Asset Management, managed by Mason Hawkins, which held a $71 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include D. E. Shaw’s D E Shaw, Jim Simons’s Renaissance Technologies and David Costen Haley’s HBK Investments.

Due to the fact that Quicksilver Resources Inc (NYSE:KWK) has witnessed declining sentiment from the smart money, we can see that there was a specific group of funds who sold off their positions entirely heading into 2013. Interestingly, Israel Englander’s Millennium Management dropped the biggest stake of the “upper crust” of funds we watch, comprising an estimated $5 million in stock.. T Boone Pickens’s fund, BP Capital, also dumped its stock, about $5 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 3 funds heading into 2013.

How have insiders been trading Quicksilver Resources Inc (NYSE:KWK)?

Insider purchases made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past half-year. Over the last six-month time frame, Quicksilver Resources Inc (NYSE:KWK) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Quicksilver Resources Inc (NYSE:KWK). These stocks are LRR Energy LP (NYSE:LRE), VAALCO Energy, Inc. (NYSE:EGY), Apco Oil and Gas International Inc (NASDAQ:APAGF), Sandridge Mississippian Trust I (NYSE:SDT), and Triangle Petroleum Corporation (NYSEAMEX:TPLM). This group of stocks are in the independent oil & gas industry and their market caps are similar to KWK’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
LRR Energy LP (NYSE:LRE) 1 1 5
VAALCO Energy, Inc. (NYSE:EGY) 10 0 0
Apco Oil and Gas International Inc (NASDAQ:APAGF) 4 0 1
Sandridge Mississippian Trust I (NYSE:SDT) 3 0 1
Triangle Petroleum Corporation (NYSEAMEX:TPLM) 8 1 3

With the results exhibited by our tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Quicksilver Resources Inc (NYSE:KWK) 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 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

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

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!