Ultrapar Participacoes SA (ADR) (NYSE:UGP) shareholders have witnessed an increase in support from the world’s most elite money managers lately.
At the moment, there are a multitude of indicators shareholders can use to analyze stocks. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the market by a superb margin (see just how much).
Equally as key, bullish insider trading sentiment is another way to parse down the investments you’re interested in. Just as you’d expect, there are a number of reasons for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this tactic if shareholders understand what to do (learn more here).
Now, let’s take a look at the recent action regarding Ultrapar Participacoes SA (ADR) (NYSE:UGP).
What have hedge funds been doing with Ultrapar Participacoes SA (ADR) (NYSE:UGP)?
In preparation for this quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of 17% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Jim Simons’s Renaissance Technologies had the most valuable position in Ultrapar Participacoes SA (ADR) (NYSE:UGP), worth close to $92.5 million, comprising 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Fisher Asset Management, managed by Ken Fisher, which held a $5.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Mike Vranos’s Ellington.
Consequently, key money managers have been driving this bullishness. Millennium Management, managed by Israel Englander, established the biggest position in Ultrapar Participacoes SA (ADR) (NYSE:UGP). Millennium Management had 3.3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $1.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Bruce Kovner’s Caxton Associates LP and Steven Cohen’s SAC Capital Advisors.
Insider trading activity in Ultrapar Participacoes SA (ADR) (NYSE:UGP)
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest half-year time period, Ultrapar Participacoes SA (ADR) (NYSE:UGP) has seen zero unique insiders purchasing, and zero 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 Ultrapar Participacoes SA (ADR) (NYSE:UGP). These stocks are Hess Corp. (NYSE:HES), Marathon Oil Corporation (NYSE:MRO), Tesoro Corporation (NYSE:TSO), HollyFrontier Corp (NYSE:HFC), and Murphy Oil Corporation (NYSE:MUR). All of these stocks are in the oil & gas refining & marketing industry and their market caps are closest to UGP’s market cap.