World Fuel Services Corporation (NYSE:INT) investors should pay attention to a decrease in activity from the world’s largest hedge funds of late.
In the eyes of most stock holders, hedge funds are perceived as underperforming, old investment vehicles of yesteryear. While there are over 8000 funds trading at present, we hone in on the crème de la crème of this group, about 450 funds. Most estimates calculate that this group has its hands on the lion’s share of the hedge fund industry’s total capital, and by watching their best investments, we have deciphered a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Just as integral, bullish insider trading activity is a second way to break down the investments you’re interested in. There are many incentives for an executive to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).
Consequently, let’s take a peek at the latest action regarding World Fuel Services Corporation (NYSE:INT).
What does the smart money think about World Fuel Services Corporation (NYSE:INT)?
At the end of the first quarter, a total of 9 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings substantially.
Of the funds we track, Cardinal Capital, managed by Amy Minella, holds the most valuable position in World Fuel Services Corporation (NYSE:INT). Cardinal Capital has a $33.6 million position in the stock, comprising 2.1% of its 13F portfolio. Sitting at the No. 2 spot is PEAK6 Capital Management, managed by Matthew Hulsizer, which held a $2.8 million call position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Ken Griffin’s Citadel Investment Group, Robert Pohly’s Samlyn Capital and Mike Vranos’s Ellington.
Because World Fuel Services Corporation (NYSE:INT) has experienced declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few money managers that slashed their full holdings at the end of the first quarter. It’s worth mentioning that D. E. Shaw’s D E Shaw said goodbye to the largest stake of the “upper crust” of funds we monitor, valued at an estimated $2.8 million in stock.. Steven Cohen’s fund, SAC Capital Advisors, also cut its stock, about $0.6 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading World Fuel Services Corporation (NYSE:INT)?
Insider buying is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest 180-day time frame, World Fuel Services Corporation (NYSE:INT) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to World Fuel Services Corporation (NYSE:INT). These stocks are Delek US Holdings, Inc. (NYSE:DK), Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), Sinopec Shanghai Petrochemical Co. (ADR) (NYSE:SHI), Western Refining, Inc. (NYSE:WNR), and Northern Tier Energy LP (NYSE:NTI). This group of stocks belong to the oil & gas refining & marketing industry and their market caps match INT’s market cap.