This Metric Says You Are Smart to Sell Potash Corp./Saskatchewan (USA) (POT)

Page 1 of 2

Is Potash Corp./Saskatchewan (USA) (NYSE:POT) a sell?

To many investors, hedge funds are assumed to be useless, old investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open today, this site focuses on the bigwigs of this club, close to 525 funds. It is assumed that this group controls the lion’s share of the hedge fund industry’s total assets, and by paying attention to their highest quality picks, we’ve figured out a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 trumped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).

Just as useful, bullish insider trading activity is another way to analyze the stock market universe. Just as you’d expect, there are many stimuli for an executive to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if investors understand where to look (learn more here).

What’s more, it’s important to analyze the latest info for Potash Corp./Saskatchewan (USA) (NYSE:POT).

How have hedgies been trading Potash Corp./Saskatchewan (USA) (NYSE:POT)?

In preparation for the third quarter, a total of 21 of the hedge funds we track held long positions in this stock, a change of -9% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially.

Potash Corp./Saskatchewan (USA) (NYSE:POT)According to our 13F database, First Eagle Investment Management, managed by Matt McLennan, holds the most valuable position in Potash Corp./Saskatchewan (USA) (NYSE:POT). First Eagle Investment Management has a $558 million position in the stock, comprising 1.7% of its 13F portfolio. The second largest stake is held by Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $238.2 million position; 0.7% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Daniel Bubis’s Tetrem Capital Management, Richard Chilton’s Chilton Investment Company and D. E. Shaw’s D E Shaw.

Judging by the fact that Potash Corp./Saskatchewan (USA) (NYSE:POT) has witnessed dropping sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedgies who sold off their entire stakes at the end of the second quarter. It’s worth mentioning that Guru Ramakrishnan’s Meru Capital said goodbye to the largest investment of the “upper crust” of funds we key on, valued at an estimated $11.8 million in stock, and Robert Bishop of Impala Asset Management was right behind this move, as the fund dumped about $8 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds at the end of the second quarter.

What have insiders been doing with Potash Corp./Saskatchewan (USA) (NYSE:POT)?

Bullish insider trading is most useful when the company in question has experienced transactions within the past 180 days. Over the latest six-month time period, Potash Corp./Saskatchewan (USA) (NYSE:POT) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Potash Corp./Saskatchewan (USA) (NYSE:POT). These stocks are CF Industries Holdings, Inc. (NYSE:CF), Agrium Inc. (USA) (NYSE:AGU), Monsanto Company (NYSE:MON), Mosaic Co (NYSE:MOS), and Syngenta AG (ADR) (NYSE:SYT). This group of stocks belong to the agricultural chemicals industry and their market caps resemble POT’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 Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!