At the moment, there are many indicators shareholders can use to watch the equity markets. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can trounce the broader indices by a superb margin (see just how much).
Equally as necessary, bullish insider trading activity is another way to look at the world of equities. Obviously, there are a number of stimuli for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).
Keeping this in mind, it’s important to study the newest info for Talisman Energy Inc. (USA) (NYSE:TLM).
How have hedgies been trading Talisman Energy Inc. (USA) (NYSE:TLM)?
In preparation for the third quarter, a total of 21 of the hedge funds we track held long positions in this stock, a change of -5% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings meaningfully.
According to our 13F database, Keith Meister’s Corvex Capital had the largest position in Talisman Energy Inc. (USA) (NYSE:TLM), worth close to $103.6 million, comprising 1.9% of its total 13F portfolio. Sitting at the No. 2 spot is Doug Silverman and Alexander Klabin of Senator Investment Group, with a $91.4 million position; the fund has 1.4% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Greg Boland’s West Face Capital, Michael A. Price and Amos Meron’s Empyrean Capital Partners and Daniel S. Och’s OZ Management.
Because Talisman Energy Inc. (USA) (NYSE:TLM) has faced a fall in interest from the smart money’s best and brightest, it’s easy to see that there exists a select few money managers that elected to cut their entire stakes at the end of the second quarter. At the top of the heap, Jonathon Jacobson’s Highfields Capital Management dumped the biggest stake of the “upper crust” of funds we monitor, comprising about $31.7 million in stock, and Jeffrey Vinik of Vinik Asset Management was right behind this move, as the fund dumped about $10.7 million worth. These transactions are interesting, as total hedge fund interest dropped by 1 funds at the end of the second quarter.
What have insiders been doing with Talisman Energy Inc. (USA) (NYSE:TLM)?
Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time period, Talisman Energy Inc. (USA) (NYSE:TLM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Talisman Energy Inc. (USA) (NYSE:TLM). These stocks are Cabot Oil & Gas Corporation (NYSE:COG), Cobalt International Energy, Inc. (NYSE:CIE), Chesapeake Energy Corporation (NYSE:CHK), Range Resources Corp. (NYSE:RRC), and Southwestern Energy Company (NYSE:SWN). This group of stocks are the members of the independent oil & gas industry and their market caps resemble TLM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cabot Oil & Gas Corporation (NYSE:COG) | 43 | 0 | 0 |
| Cobalt International Energy, Inc. (NYSE:CIE) | 31 | 0 | 0 |
| Chesapeake Energy Corporation (NYSE:CHK) | 35 | 0 | 0 |
| Range Resources Corp. (NYSE:RRC) | 35 | 0 | 0 |
| Southwestern Energy Company (NYSE:SWN) | 29 | 0 | 0 |
Using the results demonstrated by Insider Monkey’s research, regular investors should always pay attention to hedge fund and insider trading sentiment, and Talisman Energy Inc. (USA) (NYSE:TLM) applies perfectly to this mantra.
