UNS Energy Corp (UNS): Hedge Funds Are Bullish and Insiders Are Undecided, What Should You Do?

Page 1 of 2

Now, according to many of your fellow readers, hedge funds are assumed to be delayed, outdated investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site looks at the leaders of this club, around 525 funds. Analysts calculate that this group controls the lion’s share of all hedge funds’ total capital, and by keeping an eye on their highest performing equity investments, we’ve identified a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).

Just as useful, bullish insider trading activity is another way to analyze the stock market universe. There are lots of motivations for a bullish insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).

UNS Energy Corp (NYSE:UNS)

Furthermore, we’re going to discuss the newest info for UNS Energy Corp (NYSE:UNS).

How have hedgies been trading UNS Energy Corp (NYSE:UNS)?

At Q2’s end, a total of 13 of the hedge funds we track held long positions in this stock, a change of 63% from the first quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.

According to our 13F database, Phill Gross and Robert Atchinson’s Adage Capital Management had the largest position in UNS Energy Corp (NYSE:UNS), worth close to $49.2 million, accounting for 0.2% of its total 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $24.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Mario Gabelli’s GAMCO Investors, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.

With a general bullishness amongst the titans, certain bigger names were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, established the biggest position in UNS Energy Corp (NYSE:UNS). Adage Capital Management had 49.2 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $24.4 million investment in the stock during the quarter. The following funds were also among the new UNS investors: Mario Gabelli’s GAMCO Investors, Israel Englander’s Millennium Management, and D. E. Shaw’s D E Shaw.

What do corporate executives and insiders think about UNS Energy Corp (NYSE:UNS)?

Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time period, UNS Energy Corp (NYSE:UNS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to UNS Energy Corp (NYSE:UNS). These stocks are Atlantic Power Corp (NYSE:AT), IDACORP Inc (NYSE:IDA), Portland General Electric Company (NYSE:POR), Black Hills Corp (NYSE:BKH), and UIL Holdings Corporation (NYSE:UIL). This group of stocks are the members of the electric utilities industry and their market caps are similar to UNS’s market cap.

Page 1 of 2