This Metric Says You Are Smart to Sell Cameron International Corporation (NYSE:CAM)

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).

Hedge fund activity in 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.

What have insiders been doing with Cameron International Corporation (NYSE:CAM)?

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.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

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!