HudBay Minerals Inc Ord Shs (NYSE:HBM) was in 5 hedge funds’ portfolio at the end of December. HBM investors should be aware of a decrease in hedge fund interest lately. There were 7 hedge funds in our database with HBM holdings at the end of the previous quarter.
To the average investor, there are plenty of indicators investors can use to monitor Mr. Market. A duo of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can outpace their index-focused peers by a superb margin (see just how much).
Equally as integral, positive insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are a number of incentives for an insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this tactic if shareholders understand where to look (learn more here).
With these “truths” under our belt, we’re going to take a look at the latest action surrounding HudBay Minerals Inc Ord Shs (NYSE:HBM).
What does the smart money think about HudBay Minerals Inc Ord Shs (NYSE:HBM)?
Heading into 2013, a total of 5 of the hedge funds we track held long positions in this stock, a change of -29% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes significantly.
According to our comprehensive database, Eric Sprott’s Sprott Asset Management had the most valuable position in HudBay Minerals Inc Ord Shs (NYSE:HBM), worth close to $4.2 million, accounting for 0.5% of its total 13F portfolio. Coming in second is Peter Franklin Palmedo of Sun Valley Gold, with a $4 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedgies with similar optimism include Steven Cohen’s SAC Capital Advisors, Jim Simons’s Renaissance Technologies and Michael Hintze’s CQS Cayman LP.
Judging by the fact that HudBay Minerals Inc Ord Shs (NYSE:HBM) has faced declining sentiment from the smart money, it’s easy to see that there is a sect of hedge funds that decided to sell off their entire stakes heading into 2013. Interestingly, D. E. Shaw’s D E Shaw dropped the largest investment of all the hedgies we track, worth an estimated $0.9 million in stock., and Chuck Royce of Royce & Associates was right behind this move, as the fund dropped about $0.1 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 2 funds heading into 2013.
What have insiders been doing with HudBay Minerals Inc Ord Shs (NYSE:HBM)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time period, HudBay Minerals Inc Ord Shs (NYSE:HBM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to HudBay Minerals Inc Ord Shs (NYSE:HBM). These stocks are PVR Partners LP (NYSE:PVR), U.S. Silica Holdings Inc (NYSE:SLCA), Alpha Natural Resources, Inc. (NYSE:ANR), Stillwater Mining Company (NYSE:SWC), and Walter Energy, Inc. (NYSE:WLT). This group of stocks belong to the industrial metals & minerals industry and their market caps match HBM’s market cap.