Ternium S.A. (ADR) (NYSE:TX) was in 9 hedge funds’ portfolio at the end of the first quarter of 2013. TX has seen a decrease in support from the world’s most elite money managers in recent months. There were 11 hedge funds in our database with TX holdings at the end of the previous quarter.
To the average investor, there are dozens of methods investors can use to watch Mr. Market. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outclass their index-focused peers by a significant amount (see just how much).
Equally as beneficial, positive insider trading sentiment is a second way to break down the world of equities. As the old adage goes: there are many reasons for an insider to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this tactic if piggybackers understand what to do (learn more here).
Now, let’s take a look at the key action encompassing Ternium S.A. (ADR) (NYSE:TX).
How are hedge funds trading Ternium S.A. (ADR) (NYSE:TX)?
Heading into Q2, a total of 9 of the hedge funds we track were bullish in this stock, a change of -18% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their holdings meaningfully.
Of the funds we track, D E Shaw, managed by D. E. Shaw, holds the largest position in Ternium S.A. (ADR) (NYSE:TX). D E Shaw has a $8.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by John Overdeck and David Siegel of Two Sigma Advisors, with a $1.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Glenn Russell Dubin’s Highbridge Capital Management, Ken Griffin’s Citadel Investment Group and Mike Vranos’s Ellington.
Because Ternium S.A. (ADR) (NYSE:TX) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds who sold off their full holdings last quarter. Intriguingly, Jim Simons’s Renaissance Technologies said goodbye to the biggest investment of the 450+ funds we monitor, comprising close to $4.6 million in stock.. Christian Leone’s fund, Luxor Capital Group, also dropped its stock, about $2.6 million worth. These moves are important to note, as total hedge fund interest was cut by 2 funds last quarter.
How have insiders been trading Ternium S.A. (ADR) (NYSE:TX)?
Bullish insider trading is at its handiest when the company in question has seen transactions within the past 180 days. Over the last half-year time period, Ternium S.A. (ADR) (NYSE:TX) has seen 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 Ternium S.A. (ADR) (NYSE:TX). These stocks are Grupo Simec S.A.B. de C.V. (ADR) (NYSEAMEX:SIM), Companhia Siderurgica Nacional (ADR) (NYSE:SID), Mechel OAO (ADR) (NYSE:MTL), United States Steel Corporation (NYSE:X), and Steel Dynamics, Inc. (NASDAQ:STLD). This group of stocks belong to the steel & iron industry and their market caps resemble TX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Grupo Simec S.A.B. de C.V. (ADR) (NYSEAMEX:SIM) | 1 | 0 | 0 |
| Companhia Siderurgica Nacional (ADR) (NYSE:SID) | 10 | 0 | 0 |
| Mechel OAO (ADR) (NYSE:MTL) | 8 | 0 | 0 |
| United States Steel Corporation (NYSE:X) | 21 | 2 | 0 |
| Steel Dynamics, Inc. (NASDAQ:STLD) | 17 | 0 | 1 |
With the returns exhibited by Insider Monkey’s research, everyday investors must always watch hedge fund and insider trading activity, and Ternium S.A. (ADR) (NYSE:TX) shareholders fit into this picture quite nicely.
