Cameron International Corporation (NYSE:CAM) was in 31 hedge funds’ portfolio at the end of the first quarter of 2013. CAM shareholders have witnessed an increase in support from the world’s most elite money managers lately. There were 30 hedge funds in our database with CAM positions at the end of the previous quarter.
According to most stock holders, hedge funds are seen as unimportant, outdated financial tools of years past. While there are greater than 8000 funds trading at present, we at Insider Monkey hone in on the masters of this group, close to 450 funds. It is estimated that this group has its hands on the lion’s share of all hedge funds’ total asset base, and by tracking their best investments, we have determined a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Equally as key, positive insider trading sentiment is another way to parse down the financial markets. Obviously, there are lots of motivations for an insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).
Consequently, let’s take a gander at the key action encompassing Cameron International Corporation (NYSE:CAM).
How are hedge funds trading Cameron International Corporation (NYSE:CAM)?
At Q1’s end, a total of 31 of the hedge funds we track were long in this stock, a change of 3% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, Steven Richman’s East Side Capital (RR Partners) had the most valuable position in Cameron International Corporation (NYSE:CAM), worth close to $156 million, comprising 7.8% of its total 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, managed by Ken Griffin, which held a $129.1 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other peers that are bullish include Lee Ainslie’s Maverick Capital, David Stemerman’s Conatus Capital Management and Israel Englander’s Millennium Management.
Now, key money managers have been driving this bullishness. East Side Capital (RR Partners), managed by Steven Richman, established the most valuable position in Cameron International Corporation (NYSE:CAM). East Side Capital (RR Partners) had 156 million invested in the company at the end of the quarter. Ken Heebner’s Capital Growth Management also made a $10.4 million investment in the stock during the quarter. The other funds with brand new CAM positions are Matthew Tewksbury’s Stevens Capital Management, George Soros’s Soros Fund Management, and Joshua Berkowitz’s Woodbine Capital.
How are insiders trading Cameron International Corporation (NYSE:CAM)?
Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past six months. Over the last 180-day time period, Cameron International Corporation (NYSE:CAM) has seen zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Cameron International Corporation (NYSE:CAM). These stocks are Oceaneering International (NYSE:OII), National-Oilwell Varco, Inc. (NYSE:NOV), Weatherford International Ltd (NYSE:WFT), Baker Hughes Incorporated (NYSE:BHI), and FMC Technologies, Inc. (NYSE:FTI). All of these stocks are in the oil & gas equipment & services industry and their market caps resemble CAM’s market cap.