Rentech, Inc. (NYSEAMEX:RTK) was in 17 hedge funds’ portfolio at the end of December. RTK has experienced a decrease in support from the world’s most elite money managers of late. There were 19 hedge funds in our database with RTK holdings at the end of the previous quarter.
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Equally as key, bullish insider trading activity is another way to break down the marketplace. Obviously, there are plenty of stimuli for an insider to drop shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).
Keeping this in mind, let’s take a look at the key action regarding Rentech, Inc. (NYSEAMEX:RTK).
What does the smart money think about Rentech, Inc. (NYSEAMEX:RTK)?
At year’s end, a total of 17 of the hedge funds we track were long in this stock, a change of -11% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Jim Simons’s Renaissance Technologies had the largest position in Rentech, Inc. (NYSEAMEX:RTK), worth close to $19 million, accounting for 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Neil Chriss of Hutchin Hill Capital, with a $8 million position; 1.9% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Clint Coghill’s Coghill Capital Management, Brett Hendrickson’s Nokomis Capital and Bart Baum’s Ionic Capital Management.
Due to the fact that Rentech, Inc. (NYSEAMEX:RTK) has faced a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of fund managers that elected to cut their full holdings heading into 2013. It’s worth mentioning that Sander Gerber’s Hudson Bay Capital Management dumped the largest investment of all the hedgies we track, totaling close to $4 million in stock., and Roger Keith Long of Otter Creek Management was right behind this move, as the fund cut about $2 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 2 funds heading into 2013.
What have insiders been doing with Rentech, Inc. (NYSEAMEX:RTK)?
Insider buying is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time period, Rentech, Inc. (NYSEAMEX:RTK) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
With the results shown by the aforementioned research, retail investors must always watch hedge fund and insider trading sentiment, and Rentech, Inc. (NYSEAMEX:RTK) applies perfectly to this mantra.
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