Should Scorpio Tankers Inc. (NYSE:STNG) investors track the following data?
In the 21st century investor’s toolkit, there are dozens of gauges investors can use to analyze publicly traded companies. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outpace the broader indices by a very impressive margin (see just how much).
Equally as key, positive insider trading activity is another way to look at the investments you’re interested in. Obviously, there are a number of stimuli for an executive to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).
Furthermore, we’re going to discuss the newest info surrounding Scorpio Tankers Inc. (NYSE:STNG).
What have hedge funds been doing with Scorpio Tankers Inc. (NYSE:STNG)?
At Q2’s end, a total of 31 of the hedge funds we track were long in this stock, a change of 19% from the first quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes meaningfully.
When using filings from the hedgies we track, Kensico Capital, managed by Michael Lowenstein, holds the most valuable position in Scorpio Tankers Inc. (NYSE:STNG). Kensico Capital has a $98.6 million position in the stock, comprising 2.5% of its 13F portfolio. The second largest stake is held by Monarch Alternative Capital, managed by Michael Weinstock, which held a $64.4 million position; the fund has 34.6% of its 13F portfolio invested in the stock. Some other peers that are bullish include Marc Lasry’s Avenue Capital, Kenneth Mario Garschina’s Mason Capital Management and James Dinan’s York Capital Management.
As industrywide interest increased, certain bigger names were leading the bulls’ herd. Kensico Capital, managed by Michael Lowenstein, assembled the biggest position in Scorpio Tankers Inc. (NYSE:STNG). Kensico Capital had 98.6 million invested in the company at the end of the quarter. Michael Weinstock’s Monarch Alternative Capital also initiated a $64.4 million position during the quarter. The other funds with new positions in the stock are Marc Lasry’s Avenue Capital, Kenneth Mario Garschina’s Mason Capital Management, and James Dinan’s York Capital Management.
Insider trading activity in Scorpio Tankers Inc. (NYSE:STNG)
Bullish insider trading is most useful when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Scorpio Tankers Inc. (NYSE:STNG) has experienced 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 Scorpio Tankers Inc. (NYSE:STNG). These stocks are Navios Maritime Partners L.P. (NYSE:NMM), Diana Shipping Inc. (NYSE:DSX), Seaspan Corporation (NYSE:SSW), Costamare Inc (NYSE:CMRE), and Alexander & Baldwin Holdings Inc (NYSE:MATX). All of these stocks are in the shipping industry and their market caps match STNG’s market cap.