Is Thompson Creek Metals Company Inc (USA) (NYSE:TC) a buy here? Money managers are taking a pessimistic view. The number of bullish hedge fund positions shrunk by 1 recently.
In the 21st century investor’s toolkit, there are a multitude of indicators shareholders can use to analyze publicly traded companies. Two of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can trounce the S&P 500 by a significant amount (see just how much).
Just as integral, optimistic insider trading sentiment is a second way to parse down the world of equities. There are a variety of incentives for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this method if shareholders know where to look (learn more here).
Now, let's take a look at the recent action encompassing Thompson Creek Metals Company Inc (USA) (NYSE:TC).
In preparation for this quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of -8% from the previous quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings considerably.
When looking at the hedgies we track, Highbridge Capital Management, managed by Glenn Russell Dubin, holds the largest position in Thompson Creek Metals Company Inc (USA) (NYSE:TC). Highbridge Capital Management has a $15.1 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Angelo Gordon & Co, managed by John M. Angelo and Michael L. Gordon, which held a $7.5 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Other peers that are bullish include Ken Griffin's Citadel Investment Group, Cliff Asness's AQR Capital Management and Jim Simons's Renaissance Technologies.
Because Thompson Creek Metals Company Inc (USA) (NYSE:TC) has faced a declination in interest from the smart money, logic holds that there exists a select few funds who were dropping their entire stakes at the end of the first quarter. Intriguingly, Matthew Hulsizer's PEAK6 Capital Management dumped the biggest stake of all the hedgies we key on, comprising an estimated $0.2 million in stock., and Robert Polak of Anchor Bolt Capital was right behind this move, as the fund cut about $0.1 million worth. These transactions are important to note, as total hedge fund interest was cut by 1 funds at the end of the first quarter.
Bullish insider trading is most useful when the company in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Thompson Creek Metals Company Inc (USA) (NYSE:TC) has experienced 3 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns shown by our studies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Thompson Creek Metals Company Inc (USA) (NYSE:TC) is an important part of this process.