Mcmoran Exploration Co (NYSE:MMR) was in 26 hedge funds’ portfolio at the end of the first quarter of 2013. MMR investors should pay attention to a decrease in activity from the world’s largest hedge funds in recent months. There were 30 hedge funds in our database with MMR holdings at the end of the previous quarter.
In the financial world, there are a multitude of metrics investors can use to watch their holdings. A pair of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can trounce the S&P 500 by a very impressive amount (see just how much).
Equally as integral, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. There are a variety of reasons for an insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).
Consequently, we’re going to take a glance at the latest action surrounding Mcmoran Exploration Co (NYSE:MMR).
What does the smart money think about Mcmoran Exploration Co (NYSE:MMR)?
In preparation for this quarter, a total of 26 of the hedge funds we track were bullish in this stock, a change of -13% from the first quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, Paulson & Co, managed by John Paulson, holds the largest position in Mcmoran Exploration Co (NYSE:MMR). Paulson & Co has a $263.2 million position in the stock, comprising 1.5% of its 13F portfolio. On Paulson & Co’s heels is Leon Cooperman of Omega Advisors, with a $156.9 million position; 2.4% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Robert Emil Zoellner’s Alpine Associates, Cliff Asness’s AQR Capital Management and Kevin D. Eng’s Columbus Hill Capital Management.
Since Mcmoran Exploration Co (NYSE:MMR) has witnessed a declination in interest from hedge fund managers, logic holds that there is a sect of hedgies that decided to sell off their positions entirely heading into Q2. It’s worth mentioning that Shane Finemore’s Manikay Partners dumped the biggest stake of all the hedgies we key on, valued at an estimated $8 million in stock., and Leon Cooperman of Omega Advisors was right behind this move, as the fund dropped about $8 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 4 funds heading into Q2.
What do corporate executives and insiders think about Mcmoran Exploration Co (NYSE:MMR)?
Insider purchases made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time period, Mcmoran Exploration Co (NYSE:MMR) has experienced zero unique insiders buying, and 4 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 Mcmoran Exploration Co (NYSE:MMR). These stocks are Ultra Petroleum Corp. (NYSE:UPL), Newfield Exploration Co. (NYSE:NFX), Laredo Petroleum Holdings Inc (NYSE:LPI), Berry Petroleum Company (NYSE:BRY), and Rosetta Resources Inc. (NASDAQ:ROSE). This group of stocks are in the independent oil & gas industry and their market caps resemble MMR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Ultra Petroleum Corp. (NYSE:UPL) | 20 | 2 | 0 |
| Newfield Exploration Co. (NYSE:NFX) | 22 | 0 | 4 |
| Laredo Petroleum Holdings Inc (NYSE:LPI) | 4 | 0 | 2 |
| Berry Petroleum Company (NYSE:BRY) | 17 | 0 | 11 |
| Rosetta Resources Inc. (NASDAQ:ROSE) | 18 | 0 | 0 |
With the results demonstrated by our research, retail investors must always pay attention to hedge fund and insider trading activity, and Mcmoran Exploration Co (NYSE:MMR) applies perfectly to this mantra.
