At the moment, there are dozens of gauges shareholders can use to analyze their holdings. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat their index-focused peers by a solid margin (see just how much).
Just as key, bullish insider trading activity is another way to look at the marketplace. As the old adage goes: there are lots of motivations for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if you understand what to do (learn more here).
Thus, it’s important to analyze the newest info about Cobalt International Energy, Inc. (NYSE:CIE).
What does the smart money think about Cobalt International Energy, Inc. (NYSE:CIE)?
In preparation for the third quarter, a total of 31 of the hedge funds we track held long positions in this stock, a change of 15% from the first quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.
According to our 13F database, Paulson & Co, managed by John Paulson, holds the biggest position in Cobalt International Energy, Inc. (NYSE:CIE). Paulson & Co has a $372.5 million position in the stock, comprising 2.6% of its 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, managed by Ken Griffin, which held a $94.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Israel Englander’s Millennium Management, John Paulson’s Paulson & Co and Robert Pohly’s Samlyn Capital.
Consequently, certain bigger names were leading the bulls’ herd. Paulson & Co, managed by John Paulson, assembled the most valuable position in Cobalt International Energy, Inc. (NYSE:CIE). Paulson & Co had 372.5 million invested in the company at the end of the quarter. Howard Marks’s Oaktree Capital Management also made a $155.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, and Israel Englander’s Millennium Management.
How have insiders been trading Cobalt International Energy, Inc. (NYSE:CIE)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past six months. Over the latest six-month time period, Cobalt International Energy, Inc. (NYSE:CIE) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Cobalt International Energy, Inc. (NYSE:CIE). These stocks are Cabot Oil & Gas Corporation (NYSE:COG), Chesapeake Energy Corporation (NYSE:CHK), Range Resources Corp. (NYSE:RRC), Southwestern Energy Company (NYSE:SWN), and Talisman Energy Inc. (USA) (NYSE:TLM). All of these stocks are in the independent oil & gas industry and their market caps match CIE’s market cap.