Hedge Funds Aren’t Crazy About FMC Technologies, Inc. (FTI) Anymore

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FMC Technologies, Inc. (NYSE:FTI) was in 14 hedge funds’ portfolio at the end of March. FTI has seen a decrease in enthusiasm from smart money of late. There were 17 hedge funds in our database with FTI positions at the end of the previous quarter.

FMC Technologies, Inc. (NYSE:FTI)According to most investors, hedge funds are perceived as underperforming, outdated financial vehicles of the past. While there are greater than 8000 funds trading at the moment, we hone in on the elite of this club, around 450 funds. It is estimated that this group oversees the majority of all hedge funds’ total capital, and by paying attention to their top equity investments, we have uncovered a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Equally as beneficial, optimistic insider trading activity is a second way to break down the stock market universe. As the old adage goes: there are lots of motivations for a corporate insider to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this method if you know where to look (learn more here).

Consequently, it’s important to take a glance at the recent action surrounding FMC Technologies, Inc. (NYSE:FTI).

What have hedge funds been doing with FMC Technologies, Inc. (NYSE:FTI)?

At the end of the first quarter, a total of 14 of the hedge funds we track were long in this stock, a change of -18% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their stakes significantly.

Of the funds we track, Ken Griffin’s Citadel Investment Group had the most valuable position in FMC Technologies, Inc. (NYSE:FTI), worth close to $107.1 million, comprising 0.2% of its total 13F portfolio. On Citadel Investment Group’s heels is Ken Heebner of Capital Growth Management, with a $92.7 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other peers that are bullish include Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, Jason Capello’s Merchants’ Gate Capital and Charles Clough’s Clough Capital Partners.

Judging by the fact that FMC Technologies, Inc. (NYSE:FTI) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of money managers that decided to sell off their entire stakes heading into Q2. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management dumped the biggest investment of the 450+ funds we track, valued at an estimated $36.2 million in stock., and Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital was right behind this move, as the fund dumped about $31 million worth. These transactions are interesting, as total hedge fund interest fell by 3 funds heading into Q2.

What have insiders been doing with FMC Technologies, Inc. (NYSE:FTI)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest six-month time period, FMC Technologies, Inc. (NYSE:FTI) has experienced 1 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to FMC Technologies, Inc. (NYSE:FTI). These stocks are Core Laboratories N.V. (NYSE:CLB), Oceaneering International (NYSE:OII), Baker Hughes Incorporated (NYSE:BHI), Weatherford International Ltd (NYSE:WFT), and Cameron International Corporation (NYSE:CAM). All of these stocks are in the oil & gas equipment & services industry and their market caps are similar to FTI’s market cap.

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