Atlas Energy LP (NYSE:ATLS) has seen an increase in hedge fund interest recently.
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Equally as important, optimistic insider trading activity is a second way to parse down the world of equities. Obviously, there are plenty of motivations for an executive to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this strategy if piggybackers know what to do (learn more here).
With these “truths” under our belt, it’s important to take a peek at the recent action surrounding Atlas Energy LP (NYSE:ATLS).
How are hedge funds trading Atlas Energy LP (NYSE:ATLS)?
At Q1’s end, a total of 15 of the hedge funds we track were bullish in this stock, a change of 7% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings considerably.
As one would reasonably expect, some big names have jumped into Atlas Energy LP (NYSE:ATLS) headfirst. SAB Capital Management, managed by Brian Jackelow, created the most outsized position in Atlas Energy LP (NYSE:ATLS). SAB Capital Management had 44.5 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated a $10.9 million position during the quarter. The only other fund with a brand new ATLS position is Scott Scher & Michael Prober’s Clovis Capital Management.
How are insiders trading Atlas Energy LP (NYSE:ATLS)?
Insider buying is at its handiest when the primary stock in question has experienced transactions within the past six months. Over the latest six-month time frame, Atlas Energy LP (NYSE:ATLS) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Atlas Energy LP (NYSE:ATLS). These stocks are Inergy, L.P. (NYSE:NRGY), Suburban Propane Partners LP (NYSE:SPH), Piedmont Natural Gas Company, Inc. (NYSE:PNY), Southwest Gas Corporation (NYSE:SWX), and WGL Holdings Inc (NYSE:WGL). All of these stocks are in the gas utilities industry and their market caps are closest to ATLS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Inergy, L.P. (NYSE:NRGY) | 8 | 0 | 0 |
| Suburban Propane Partners LP (NYSE:SPH) | 5 | 1 | 4 |
| Piedmont Natural Gas Company, Inc. (NYSE:PNY) | 9 | 1 | 1 |
| Southwest Gas Corporation (NYSE:SWX) | 16 | 1 | 11 |
| WGL Holdings Inc (NYSE:WGL) | 5 | 1 | 3 |
With the returns demonstrated by the aforementioned strategies, retail investors must always monitor hedge fund and insider trading sentiment, and Atlas Energy LP (NYSE:ATLS) applies perfectly to this mantra.
