This Metric Says You Are Smart to Sell Aegion Corp – Class A (AEGN)

Page 1 of 2

Aegion Corp – Class A (NASDAQ:AEGN) shareholders have witnessed a decrease in hedge fund sentiment of late.

If you’d ask most traders, hedge funds are viewed as underperforming, outdated financial tools of the past. While there are more than 8000 funds trading today, we at Insider Monkey look at the bigwigs of this club, about 450 funds. Most estimates calculate that this group controls most of all hedge funds’ total asset base, and by monitoring their best investments, we have identified a number of investment strategies that have historically beaten Mr. Market. 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 began to 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).

Just as integral, optimistic insider trading activity is another way to parse down the world of equities. Just as you’d expect, there are a variety of stimuli for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the impressive potential of this strategy if investors understand what to do (learn more here).

With these “truths” under our belt, it’s important to take a peek at the latest action encompassing Aegion Corp – Class A (NASDAQ:AEGN).

How have hedgies been trading Aegion Corp – Class A (NASDAQ:AEGN)?

At the end of the first quarter, a total of 11 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes significantly.

Aegion Corp - Class A (NASDAQ:AEGN)According to our comprehensive database, Peconic Partners LLC, managed by William Harnisch, holds the most valuable position in Aegion Corp – Class A (NASDAQ:AEGN). Peconic Partners LLC has a $33.6 million position in the stock, comprising 5.2% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $16.9 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include John I. Dickerson’s Summit Global Management, Amy Minella’s Cardinal Capital and Mario Gabelli’s GAMCO Investors.

Because Aegion Corp – Class A (NASDAQ:AEGN) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of money managers that slashed their full holdings heading into Q2. Interestingly, D. E. Shaw’s D E Shaw cut the largest position of the “upper crust” of funds we track, comprising close to $0.7 million in stock., and Matthew Hulsizer of PEAK6 Capital Management was right behind this move, as the fund dumped about $0.4 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with Aegion Corp – Class A (NASDAQ:AEGN)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past six months. Over the last six-month time frame, Aegion Corp – Class A (NASDAQ:AEGN) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Aegion Corp – Class A (NASDAQ:AEGN). These stocks are Layne Christensen Company (NASDAQ:LAYN), Dycom Industries, Inc. (NYSE:DY), Granite Construction Inc. (NYSE:GVA), Primoris Services Corp (NASDAQ:PRIM), and Tutor Perini Corp (NYSE:TPC). This group of stocks are the members of the heavy construction industry and their market caps are similar to AEGN’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!