Is Hercules Offshore, Inc. (NASDAQ:HERO) Going to Burn These Hedge Funds? – W&T Offshore, Inc. (NYSE:WTI), Crestwood Midstream Partners LP (NYSE:CMLP)

Hercules Offshore, Inc. (NASDAQ:HERO) was in 14 hedge funds’ portfolio at the end of the fourth quarter of 2012. HERO investors should be aware of a decrease in activity from the world’s largest hedge funds in recent months. There were 16 hedge funds in our database with HERO positions at the end of the previous quarter.

Crestwood Midstream Partners LP (NYSE:CMLP)

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With all of this in mind, it’s important to take a glance at the recent action encompassing Hercules Offshore, Inc. (NASDAQ:HERO).

Hedge fund activity in Hercules Offshore, Inc. (NASDAQ:HERO)

At the end of the fourth quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of -13% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings meaningfully.

Of the funds we track, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Hercules Offshore, Inc. (NASDAQ:HERO). Citadel Investment Group has a $31 million position in the stock, comprising 0% of its 13F portfolio. Coming in second is D E Shaw, managed by D. E. Shaw, which held a $23 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Israel Englander’s Millennium Management, Dmitry Balyasny’s Balyasny Asset Management and Chuck Royce’s Royce & Associates.

Judging by the fact that Hercules Offshore, Inc. (NASDAQ:HERO) has experienced a declination in interest from the entirety of the hedge funds we track, logic holds that there is a sect of funds that elected to cut their entire stakes in Q4. At the top of the heap, George Soros’s Soros Fund Management cut the largest stake of the “upper crust” of funds we track, comprising close to $7 million in stock., and Tim Flannery of Copia Capital was right behind this move, as the fund sold off about $1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 2 funds in Q4.

What have insiders been doing with Hercules Offshore, Inc. (NASDAQ:HERO)?

Insider buying is most useful when the company in question has seen transactions within the past half-year. Over the last 180-day time period, Hercules Offshore, Inc. (NASDAQ:HERO) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Hercules Offshore, Inc. (NASDAQ:HERO). These stocks are Bill Barrett Corporation (NYSE:BBG), W&T Offshore, Inc. (NYSE:WTI), Crestwood Midstream Partners LP (NYSE:CMLP), Key Energy Services, Inc. (NYSE:KEG), and Seadrill Partners LLC (NYSE:SDLP). All of these stocks are in the oil & gas drilling & exploration industry and their market caps are closest to HERO’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Bill Barrett Corporation (NYSE:BBG) 13 0 0
W&T Offshore, Inc. (NYSE:WTI) 10 2 0
Crestwood Midstream Partners LP (NYSE:CMLP) 2 0 0
Key Energy Services, Inc. (NYSE:KEG) 18 4 1
Seadrill Partners LLC (NYSE:SDLP) 6 0 0

With the returns exhibited by Insider Monkey’s studies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Hercules Offshore, Inc. (NASDAQ:HERO) is an important part of this process.

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