Cameron International Corporation (NYSE:CAM) was in 28 hedge funds' portfolio at the end of the fourth quarter of 2012. CAM has experienced a decrease in hedge fund interest in recent months. There were 36 hedge funds in our database with CAM holdings at the end of the previous quarter.
If you'd ask most traders, hedge funds are perceived as underperforming, old investment tools of yesteryear. While there are over 8000 funds in operation at the moment, we at Insider Monkey look at the elite of this group, about 450 funds. It is estimated that this group has its hands on the majority of the hedge fund industry's total asset base, and by watching their highest performing investments, we have uncovered a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year 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 25 percentage points in 6.5 month (see the details here).
Equally as integral, bullish insider trading activity is a second way to break down the marketplace. As the old adage goes: there are lots of stimuli for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Various academic studies have demonstrated the valuable potential of this tactic if you know what to do (learn more here).
Consequently, let's take a glance at the latest action surrounding Cameron International Corporation (NYSE:CAM).
In preparation for this year, a total of 28 of the hedge funds we track were bullish in this stock, a change of -22% from the third quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were increasing their holdings substantially.
According to our comprehensive database, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Cameron International Corporation (NYSE:CAM). Citadel Investment Group has a $143 million position in the stock, comprising 0.2% of its 13F portfolio. On Citadel Investment Group's heels is Dmitry Balyasny of Balyasny Asset Management, with a $88 million position; 1% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Steven Cohen's SAC Capital Advisors, Israel Englander's Millennium Management and Lee Ainslie's Maverick Capital.
Judging by the fact that Cameron International Corporation (NYSE:CAM) has witnessed a declination in interest from the aggregate hedge fund industry, logic holds that there lies a certain "tier" of hedge funds that slashed their full holdings heading into 2013. At the top of the heap, Sean Cullinan's Point State Capital dropped the biggest stake of the "upper crust" of funds we watch, worth close to $55 million in stock.. Ken Heebner's fund, Capital Growth Management, also dumped its stock, about $17 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 8 funds heading into 2013.
Insider buying is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the last half-year time period, Cameron International Corporation (NYSE:CAM) has seen zero unique insiders purchasing, and 11 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 Cameron International Corporation (NYSE:CAM) is no exception.
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.