Teck Resources Ltd (USA) (NYSE:TCK): Are Hedge Funds Right About This Stock? – Turquoise Hill Resources Ltd (NYSE:TRQ), CONSOL Energy Inc. (NYSE:CNX)

Is Teck Resources Ltd (USA) (NYSE:TCK) ready to raly soon? Money managers are becoming less confident. The number of bullish hedge fund bets shrunk by 2 recently.

Peabody Energy Corporation (NYSE:BTU)

In today’s marketplace, there are many metrics market participants can use to monitor publicly traded companies. A duo of the most innovative 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 best hedge fund managers can beat their index-focused peers by a very impressive amount (see just how much).

Just as important, positive insider trading activity is a second way to break down the investments you’re interested in. As the old adage goes: there are a number of reasons for an insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).

Now, we’re going to take a look at the latest action encompassing Teck Resources Ltd (USA) (NYSE:TCK).

What does the smart money think about Teck Resources Ltd (USA) (NYSE:TCK)?

At the end of the fourth quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of -14% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Tetrem Capital Management, managed by Daniel Bubis, holds the biggest position in Teck Resources Ltd (USA) (NYSE:TCK). Tetrem Capital Management has a $134 million position in the stock, comprising 4% of its 13F portfolio. Coming in second is Chilton Investment Company, managed by Richard Chilton, which held a $21 million position; 0.6% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Dmitry Balyasny’s Balyasny Asset Management, and D. E. Shaw’s D E Shaw.

Due to the fact that Teck Resources Ltd (USA) (NYSE:TCK) has faced declining sentiment from the entirety of the hedge funds we track, we can see that there was a specific group of funds who sold off their full holdings in Q4. Interestingly, Israel Englander’s Millennium Management cut the biggest position of all the hedgies we key on, valued at an estimated $15 million in stock., and David Costen Haley of HBK Investments was right behind this move, as the fund cut about $9 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds in Q4.

Insider trading activity in Teck Resources Ltd (USA) (NYSE:TCK)

Insider purchases made by high-level executives is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time period, Teck Resources Ltd (USA) (NYSE:TCK) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Teck Resources Ltd (USA) (NYSE:TCK). These stocks are Peabody Energy Corporation (NYSE:BTU), Turquoise Hill Resources Ltd (NYSE:TRQ), Yanzhou Coal Mining Co Ltd (ADR) (NYSE:YZC), CONSOL Energy Inc. (NYSE:CNX), and Cameco Corporation (USA) (NYSE:CCJ). This group of stocks are in the industrial metals & minerals industry and their market caps are closest to TCK’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Peabody Energy Corporation (NYSE:BTU) 32 0 3
Turquoise Hill Resources Ltd (NYSE:TRQ) 16 0 0
Yanzhou Coal Mining Co Ltd (ADR) (NYSE:YZC) 6 0 0
CONSOL Energy Inc. (NYSE:CNX) 23 0 1
Cameco Corporation (USA) (NYSE:CCJ) 13 0 0

With the returns shown by our studies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Teck Resources Ltd (USA) (NYSE:TCK) is no exception.