Triangle Petroleum Corporation (NYSEAMEX:TPLM) has experienced a decrease in hedge fund sentiment in recent months.
To the average investor, there are many gauges market participants can use to analyze their holdings. Some of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can outclass the broader indices by a significant margin (see just how much).
Just as integral, bullish insider trading sentiment is a second way to break down the world of equities. There are a number of reasons for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).
Keeping this in mind, let’s take a glance at the recent action encompassing Triangle Petroleum Corporation (NYSEAMEX:TPLM).
How are hedge funds trading Triangle Petroleum Corporation (NYSEAMEX:TPLM)?
In preparation for this year, a total of 8 of the hedge funds we track were long in this stock, a change of -11% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.
Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in Triangle Petroleum Corporation (NYSEAMEX:TPLM). Royce & Associates has a $7.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Driehaus Capital, managed by Richard Driehaus, which held a $1 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Stanley Shopkorn and Douglas Day’s Hilltop Park Associates, Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s GRT Capital Partners and Andrew Wallach’s Cumberland Associates.
Due to the fact that Triangle Petroleum Corporation (NYSEAMEX:TPLM) has faced falling interest from the aggregate hedge fund industry, we can see that there was a specific group of fund managers that decided to sell off their positions entirely in Q4. At the top of the heap, Richard Chilton’s Chilton Investment Company said goodbye to the largest stake of the 450+ funds we watch, comprising an estimated $1.4 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund cut about $0.3 million worth. These moves are interesting, as total hedge fund interest dropped by 1 funds in Q4.
How have insiders been trading Triangle Petroleum Corporation (NYSEAMEX:TPLM)?
Insider purchases made by high-level executives is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the latest half-year time frame, Triangle Petroleum Corporation (NYSEAMEX:TPLM) has experienced 1 unique insiders purchasing, and 3 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 Triangle Petroleum Corporation (NYSEAMEX:TPLM). These stocks are LRR Energy LP (NYSE:LRE), VAALCO Energy, Inc. (NYSE:EGY), Apco Oil and Gas International Inc (NASDAQ:APAGF), Quicksilver Resources Inc (NYSE:KWK), and Sandridge Mississippian Trust I (NYSE:SDT). All of these stocks are in the independent oil & gas industry and their market caps are similar to TPLM’s market cap.