Should You Avoid Chart Industries, Inc. (GTLS)?

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Now, according to many traders, hedge funds are assumed to be overrated, outdated investment tools of an era lost to time. Although there are In excess of 8,000 hedge funds trading today, Insider Monkey aim at the elite of this group, close to 525 funds. It is assumed that this group controls the lion’s share of all hedge funds’ total capital, and by paying attention to their best stock picks, we’ve come up with a number of investment strategies that have historically outperformed the S&P 500. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Equally as crucial, optimistic insider trading sentiment is a second way to analyze the marketplace. Obviously, there are a variety of incentives for an insider to sell shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).

What’s more, we’re going to study the newest info about Chart Industries, Inc. (NASDAQ:GTLS).

What does the smart money think about Chart Industries, Inc. (NASDAQ:GTLS)?

In preparation for the third quarter, a total of 15 of the hedge funds we track were long in this stock, a change of -6% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.

Chart Industries, Inc. (NASDAQ:GTLS)When using filings from the hedgies we track, Columbus Circle Investors, managed by Donald Chiboucis, holds the most valuable position in Chart Industries, Inc. (NASDAQ:GTLS). Columbus Circle Investors has a $31.9 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is Drew Cupps of Cupps Capital Management, with a $31 million position; 2.5% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Charles Clough’s Clough Capital Partners, Brian Taylor’s Pine River Capital Management and Richard Driehaus’s Driehaus Capital.

Due to the fact Chart Industries, Inc. (NASDAQ:GTLS) has faced bearish sentiment from upper-tier hedge fund managers, we can see that there exists a select few hedge funds that decided to sell off their positions entirely in Q1. Interestingly, Israel Englander’s Catapult Capital Management dumped the biggest stake of the 450+ funds we monitor, valued at an estimated $1.7 million in stock, and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund sold off about $0.3 million worth. These moves are interesting, as total hedge fund interest dropped by 1 funds in Q1.

What have insiders been doing with Chart Industries, Inc. (NASDAQ:GTLS)?

Bullish insider trading is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time period, Chart Industries, Inc. (NASDAQ:GTLS) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Chart Industries, Inc. (NASDAQ:GTLS). These stocks are Mueller Industries, Inc. (NYSE:MLI), Allegheny Technologies Incorporated (NYSE:ATI), Sims Metal Management Ltd (ADR) (NYSE:SMS), Worthington Industries, Inc. (NYSE:WOR), and Carpenter Technology Corporation (NYSE:CRS). This group of stocks belong to the metal fabrication industry and their market caps resemble GTLS’s market cap.

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