To the average investor, there are tons of methods investors can use to track the equity markets. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can outpace the market by a very impressive margin (see just how much).
Equally as necessary, optimistic insider trading activity is a second way to look at the financial markets. There are a variety of stimuli for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).
Furthermore, it’s important to study the latest info surrounding United States Steel Corporation (NYSE:X).
What does the smart money think about United States Steel Corporation (NYSE:X)?
At the end of the second quarter, a total of 20 of the hedge funds we track were bullish in this stock, a change of -5% from the first quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes significantly.
Out of the hedge funds we follow, Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, holds the most valuable position in United States Steel Corporation (NYSE:X). Blue Mountain Capital has a $55.4 million position in the stock, comprising 2.3% of its 13F portfolio. Coming in second is D E Shaw, managed by D. E. Shaw, which held a $54.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, and Cliff Asness’s AQR Capital Management.
Since United States Steel Corporation (NYSE:X) has witnessed declining interest from the entirety of the hedge funds we track, logic holds that there were a few hedge funds that slashed their positions entirely heading into Q2. At the top of the heap, Philippe Jabre’s Jabre Capital Partners dumped the biggest investment of the “upper crust” of funds we watch, comprising an estimated $11.7 million in stock, and Philippe Jabre of Jabre Capital Partners was right behind this move, as the fund sold off about $11.7 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 1 funds heading into Q2.
What do corporate executives and insiders think about United States Steel Corporation (NYSE:X)?
Insider buying made by high-level executives is at its handiest when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time frame, United States Steel Corporation (NYSE:X) 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 United States Steel Corporation (NYSE:X). These stocks are Ternium S.A. (ADR) (NYSE:TX), Harsco Corporation (NYSE:HSC), Steel Dynamics, Inc. (NASDAQ:STLD), Grupo Simec S.A.B. de C.V. (ADR) (NYSEAMEX:SIM), and Mechel OAO (ADR) (NYSE:MTL). This group of stocks belong to the steel & iron industry and their market caps are closest to X’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Ternium S.A. (ADR) (NYSE:TX)||5||0||0|
|Harsco Corporation (NYSE:HSC)||14||0||0|
|Steel Dynamics, Inc. (NASDAQ:STLD)||15||0||0|
|Grupo Simec S.A.B. de C.V. (ADR) (NYSEAMEX:SIM)||0||0|
|Mechel OAO (ADR) (NYSE:MTL)||4||0||0|
Using the returns shown by our analyses, average investors must always keep one eye on hedge fund and insider trading sentiment, and United States Steel Corporation (NYSE:X) is no exception.