Talisman Energy Inc. (USA) (NYSE:TLM): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Talisman Energy Inc. (USA) (NYSE:TLM) shareholders have witnessed an increase in support from the world’s most elite money managers lately.

Talisman Energy Inc. (USA) (NYSE:TLM)In the 21st century investor’s toolkit, there are plenty of indicators shareholders can use to watch Mr. Market. Two of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can trounce the S&P 500 by a solid amount (see just how much).

Equally as important, positive insider trading activity is another way to break down the world of equities. There are lots of reasons for an upper level exec to downsize shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if investors understand what to do (learn more here).

Consequently, we’re going to take a look at the latest action regarding Talisman Energy Inc. (USA) (NYSE:TLM).

What have hedge funds been doing with Talisman Energy Inc. (USA) (NYSE:TLM)?

Heading into 2013, a total of 16 of the hedge funds we track were bullish in this stock, a change of 7% from the third quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes meaningfully.

According to our comprehensive database, Steven Cohen’s SAC Capital Advisors had the most valuable position in Talisman Energy Inc. (USA) (NYSE:TLM), worth close to $138 million, comprising 0.7% of its total 13F portfolio. Coming in second is Doug Silverman of Senator Investment Group, with a $43 million position; 0.9% of its 13F portfolio is allocated to the company. Other peers that hold long positions include Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management and Jeffrey Vinik’s Vinik Asset Management.

As one would reasonably expect, some big names have jumped into Talisman Energy Inc. (USA) (NYSE:TLM) headfirst. Senator Investment Group, managed by Doug Silverman, assembled the largest position in Talisman Energy Inc. (USA) (NYSE:TLM). Senator Investment Group had 43 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also initiated a $5 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Boaz Weinstein’s Saba Capital, and John Burbank’s Passport Capital.

What do corporate executives and insiders think about Talisman Energy Inc. (USA) (NYSE:TLM)?

Insider purchases made by high-level executives is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the latest half-year time period, Talisman Energy Inc. (USA) (NYSE:TLM) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results demonstrated by the aforementioned time-tested strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Talisman Energy Inc. (USA) (NYSE:TLM) is no exception.

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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.

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