Atlas Resource Partners, L.P. (NYSE:ARP) has seen an increase in activity from the world’s largest hedge funds in recent months.
In the financial world, there are tons of methods shareholders can use to monitor the equity markets. Some of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can outperform their index-focused peers by a solid margin (see just how much).
Equally as integral, positive insider trading activity is a second way to parse down the stock market universe. There are a number of incentives for an insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this method if piggybackers know where to look (learn more here).
Keeping this in mind, it’s important to take a look at the latest action regarding Atlas Resource Partners, L.P. (NYSE:ARP).
What does the smart money think about Atlas Resource Partners, L.P. (NYSE:ARP)?
Heading into Q2, a total of 11 of the hedge funds we track held long positions in this stock, a change of 10% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their holdings substantially.
Of the funds we track, Leon Cooperman’s Omega Advisors had the most valuable position in Atlas Resource Partners, L.P. (NYSE:ARP), worth close to $37.1 million, accounting for 0.6% of its total 13F portfolio. The second largest stake is held by Omega Advisors, managed by Leon Cooperman, which held a $27.6 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Doug Silverman and Alexander Klabin’s Senator Investment Group, Wayne Cooperman’s Cobalt Capital Management and Remy Trafelet’s Trafelet Capital.
With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Clovis Capital Management, managed by Scott Scher & Michael Prober, assembled the largest position in Atlas Resource Partners, L.P. (NYSE:ARP). Clovis Capital Management had 0.2 million invested in the company at the end of the quarter.
What have insiders been doing with Atlas Resource Partners, L.P. (NYSE:ARP)?
Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest six-month time period, Atlas Resource Partners, L.P. (NYSE:ARP) has experienced 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Atlas Resource Partners, L.P. (NYSE:ARP). These stocks are Heartland Payment Systems, Inc. (NYSE:HPY), ABM Industries, Inc. (NYSE:ABM), NetSpend Holdings Inc (NASDAQ:NTSP), TeleTech Holdings, Inc. (NASDAQ:TTEC), and Quad/Graphics, Inc. (NYSE:QUAD). All of these stocks are in the business services industry and their market caps are similar to ARP’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Heartland Payment Systems, Inc. (NYSE:HPY)||19||1||7|
|ABM Industries, Inc. (NYSE:ABM)||9||0||4|
|NetSpend Holdings Inc (NASDAQ:NTSP)||15||0||1|
|TeleTech Holdings, Inc. (NASDAQ:TTEC)||11||0||0|
|Quad/Graphics, Inc. (NYSE:QUAD)||11||0||1|
With the returns shown by our studies, everyday investors must always watch hedge fund and insider trading activity, and Atlas Resource Partners, L.P. (NYSE:ARP) is an important part of this process.