Ship Finance International Limited (NYSE:SFL) investors should be aware of an increase in hedge fund sentiment recently.
To the average investor, there are plenty of gauges investors can use to monitor the equity markets. Some 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 best investment managers can outperform the broader indices by a solid margin (see just how much).
Just as important, bullish insider trading activity is another way to parse down the financial markets. Just as you’d expect, there are a number of stimuli for an insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if shareholders understand where to look (learn more here).
With all of this in mind, it’s important to take a gander at the recent action encompassing Ship Finance International Limited (NYSE:SFL).
How have hedgies been trading Ship Finance International Limited (NYSE:SFL)?
At the end of the first quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of 120% from the first quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully.
Of the funds we track, Jim Simons’s Renaissance Technologies had the most valuable position in Ship Finance International Limited (NYSE:SFL), worth close to $21 million, comprising 0.1% of its total 13F portfolio. On Renaissance Technologies’s heels is Dreman Value Management, managed by David Dreman, which held a $10.9 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Don Morgan’s Brigade Capital, and Cliff Asness’s AQR Capital Management.
Now, some big names were breaking ground themselves. Dreman Value Management, managed by David Dreman, created the largest position in Ship Finance International Limited (NYSE:SFL). Dreman Value Management had 10.9 million invested in the company at the end of the quarter. Don Morgan’s Brigade Capital also made a $10.6 million investment in the stock during the quarter. The other funds with brand new SFL positions are Cliff Asness’s AQR Capital Management, Ken Griffin’s Citadel Investment Group, and Israel Englander’s Millennium Management.
What do corporate executives and insiders think about Ship Finance International Limited (NYSE:SFL)?
Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest six-month time period, Ship Finance International Limited (NYSE:SFL) 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 Ship Finance International Limited (NYSE:SFL). These stocks are Scorpio Tankers Inc. (NYSE:STNG), Costamare Inc (NYSE:CMRE), Golar LNG Partners LP (NASDAQ:GMLP), Seaspan Corporation (NYSE:SSW), and Seacor Holdings, Inc. (NYSE:CKH). All of these stocks are in the shipping industry and their market caps are similar to SFL’s market cap.