ArcelorMittal (ADR) (NYSE:MT) was in 12 hedge funds’ portfolio at the end of March. MT investors should be aware of an increase in hedge fund interest recently. There were 9 hedge funds in our database with MT positions at the end of the previous quarter.
To most stock holders, hedge funds are assumed to be slow, old investment vehicles of the past. While there are over 8000 funds with their doors open at the moment, we look at the elite of this club, around 450 funds. It is widely believed that this group oversees most of all hedge funds’ total capital, and by watching their best picks, we have deciphered a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outperformed 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 (see all of our picks from August).
Equally as important, bullish insider trading activity is another way to parse down the investments you’re interested in. As the old adage goes: there are lots of stimuli for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this method if you understand what to do (learn more here).
Now, let’s take a glance at the latest action surrounding ArcelorMittal (ADR) (NYSE:MT).
What does the smart money think about ArcelorMittal (ADR) (NYSE:MT)?
In preparation for this quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 33% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings substantially.
According to our comprehensive database, Bart Baum’s Ionic Capital Management had the biggest position in ArcelorMittal (ADR) (NYSE:MT), worth close to $122.1 million, accounting for 3.5% of its total 13F portfolio. On Ionic Capital Management’s heels is Citadel Investment Group, managed by Ken Griffin, which held a $44.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Steven Cohen’s SAC Capital Advisors, Boaz Weinstein’s Saba Capital and Matthew Hulsizer’s PEAK6 Capital Management.
Now, key money managers were breaking ground themselves. Ionic Capital Management, managed by Bart Baum, created the biggest position in ArcelorMittal (ADR) (NYSE:MT). Ionic Capital Management had 122.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $44.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Boaz Weinstein’s Saba Capital, Matthew Hulsizer’s PEAK6 Capital Management, and Jason Adler’s AlphaBet Management.
What have insiders been doing with ArcelorMittal (ADR) (NYSE:MT)?
Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past 180 days. Over the latest six-month time frame, ArcelorMittal (ADR) (NYSE:MT) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to ArcelorMittal (ADR) (NYSE:MT). These stocks are Companhia Siderurgica Nacional (ADR) (NYSE:SID), Gerdau SA (ADR) (NYSE:GGB), Nucor Corporation (NYSE:NUE), POSCO (ADR) (NYSE:PKX), and Tenaris S.A. (ADR) (NYSE:TS). This group of stocks are the members of the steel & iron industry and their market caps resemble MT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Companhia Siderurgica Nacional (ADR) (NYSE:SID)||10||0||0|
|Gerdau SA (ADR) (NYSE:GGB)||10||0||0|
|Nucor Corporation (NYSE:NUE)||26||0||1|
|POSCO (ADR) (NYSE:PKX)||9||0||0|
|Tenaris S.A. (ADR) (NYSE:TS)||10||0||0|
With the returns exhibited by the aforementioned time-tested strategies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and ArcelorMittal (ADR) (NYSE:MT) applies perfectly to this mantra.