SemGroup Corp (NYSE:SEMG) was in 30 hedge funds’ portfolio at the end of the fourth quarter of 2012. SEMG shareholders have witnessed a decrease in activity from the world’s largest hedge funds recently. There were 30 hedge funds in our database with SEMG positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are plenty of indicators market participants can use to monitor Mr. Market. A duo of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can outpace the market by a solid amount (see just how much).
Equally as beneficial, optimistic insider trading sentiment is a second way to break down the marketplace. Obviously, there are many reasons for an insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this tactic if you know what to do (learn more here).
Consequently, let’s take a peek at the recent action surrounding SemGroup Corp (NYSE:SEMG).
What have hedge funds been doing with SemGroup Corp (NYSE:SEMG)?
At the end of the fourth quarter, a total of 30 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes significantly.
Of the funds we track, Lone Pine Capital, managed by Stephen Mandel, holds the largest position in SemGroup Corp (NYSE:SEMG). Lone Pine Capital has a $85 million billion position in the stock, comprising 0.5% of its 13F portfolio. The second largest stake is held by Senator Investment Group, managed by Doug Silverman, which held a $65 million position; the fund has 1.4% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Israel Englander’s Millennium Management, Yale M. Fergang and Robert W. Medway’s Royal Capital and Dmitry Balyasny’s Balyasny Asset Management.
Because SemGroup Corp (NYSE:SEMG) has faced a declination in interest from the smart money, it’s safe to say that there exists a select few hedgies who were dropping their entire stakes last quarter. Intriguingly, Tim Flannery’s Copia Capital cut the biggest position of the 450+ funds we track, valued at an estimated $2 million in stock., and Jacob Gottlieb of Visium Asset Management was right behind this move, as the fund dropped about $1 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in SemGroup Corp (NYSE:SEMG)
Insider buying is most useful when the company in question has experienced transactions within the past 180 days. Over the latest half-year time frame, SemGroup Corp (NYSE:SEMG) has seen 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns demonstrated by our tactics, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and SemGroup Corp (NYSE:SEMG) applies perfectly to this mantra.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.