Is Tenaris S.A. (ADR) (NYSE:TS) a bargain? Hedge funds are turning bullish. The number of long hedge fund bets improved by 2 recently.
In the 21st century investor’s toolkit, there are many indicators market participants can use to monitor publicly traded companies. A duo of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass the broader indices by a solid amount (see just how much).
Equally as important, optimistic insider trading activity is another way to parse down the stock market universe. Obviously, there are a variety of motivations for an insider to downsize shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).
Consequently, we’re going to take a peek at the latest action regarding Tenaris S.A. (ADR) (NYSE:TS).
Hedge fund activity in Tenaris S.A. (ADR) (NYSE:TS)
Heading into Q2, a total of 10 of the hedge funds we track were long in this stock, a change of 25% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly.
Of the funds we track, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Tenaris S.A. (ADR) (NYSE:TS). Citadel Investment Group has a $1.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Citadel Investment Group’s heels is Forward Management, managed by J. Alan Reid, Jr., which held a $1.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, and Israel Englander’s Millennium Management.
Now, specific money managers were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, created the largest position in Tenaris S.A. (ADR) (NYSE:TS). Citadel Investment Group had 1.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Steven Cohen’s SAC Capital Advisors and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
What have insiders been doing with Tenaris S.A. (ADR) (NYSE:TS)?
Bullish insider trading is particularly usable when the company in question has seen transactions within the past 180 days. Over the last 180-day time period, Tenaris S.A. (ADR) (NYSE:TS) has seen zero unique insiders buying, 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 Tenaris S.A. (ADR) (NYSE:TS). These stocks are Companhia Siderurgica Nacional (ADR) (NYSE:SID), Gerdau SA (ADR) (NYSE:GGB), Nucor Corporation (NYSE:NUE), ArcelorMittal (ADR) (NYSE:MT), and POSCO (ADR) (NYSE:PKX). This group of stocks are in the steel & iron industry and their market caps are similar to TS’s market cap.