EnergySolutions, Inc. (NYSE:ES) has experienced an increase in enthusiasm from smart money of late.
If you’d ask most investors, hedge funds are assumed to be unimportant, old investment vehicles of yesteryear. While there are more than 8000 funds trading today, we look at the bigwigs of this group, around 450 funds. It is estimated that this group oversees the lion’s share of the smart money’s total capital, and by tracking their best stock picks, we have formulated a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 23.3 percentage points in 8 months (check out a sample of our picks).
Equally as key, bullish insider trading activity is another way to break down the marketplace. Obviously, there are a number of stimuli for an executive to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).
With all of this in mind, it’s important to take a gander at the key action encompassing EnergySolutions, Inc. (NYSE:ES).
How have hedgies been trading EnergySolutions, Inc. (NYSE:ES)?
At the end of the first quarter, a total of 15 of the hedge funds we track were long in this stock, a change of 15% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings meaningfully.
According to our comprehensive database, Clint Carlson’s Carlson Capital had the largest position in EnergySolutions, Inc. (NYSE:ES), worth close to $33.5 million, comprising 0.5% of its total 13F portfolio. Coming in second is Nancy Havens-Hasty of Havens Advisors, with a $6.7 million position; the fund has 4.2% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and Carl Goldsmith and Scott Klein’s Beach Point Capital Management.
As one would reasonably expect, key money managers have jumped into EnergySolutions, Inc. (NYSE:ES) headfirst. Havens Advisors, managed by Nancy Havens-Hasty, assembled the biggest position in EnergySolutions, Inc. (NYSE:ES). Havens Advisors had 6.7 million invested in the company at the end of the quarter. Michael Price’s MFP Investors also initiated a $3.8 million position during the quarter. The other funds with brand new ES positions are Matthew Halbower’s Pentwater Capital Management, Jacob Gottlieb’s Visium Asset Management, and Paul Touradji’s TOURADJI CAPITAL MANAGEMENT, LP.
What have insiders been doing with EnergySolutions, Inc. (NYSE:ES)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time frame, EnergySolutions, Inc. (NYSE:ES) 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 should always watch hedge fund and insider trading activity, and EnergySolutions, Inc. (NYSE:ES) applies perfectly to this mantra.