In the eyes of many of your peers, hedge funds are perceived as useless, old investment vehicles of a period lost to current times. Although there are In excess of 8,000 hedge funds with their doors open today, this site aim at the masters of this group, around 525 funds. It is assumed that this group controls the lion’s share of the smart money’s total assets, and by watching their best stock picks, we’ve discovered a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year 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 outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as useful, optimistic insider trading sentiment is a second way to look at the investments you’re interested in. Just as you’d expect, there are lots of incentives for an upper level exec to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this tactic if investors understand what to do (learn more here).
What’s more, it’s important to analyze the newest info about Oceaneering International (NYSE:OII).
How are hedge funds trading Oceaneering International (NYSE:OII)?
In preparation for the third quarter, a total of 23 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings meaningfully.
Out of the hedge funds we follow, Stephen Mandel’s Lone Pine Capital had the largest position in Oceaneering International (NYSE:OII), worth close to $250.4 million, comprising 1.2% of its total 13F portfolio. Sitting at the No. 2 spot is Steven Richman of East Side Capital (RR Partners), with a $75.7 million position; the fund has 3.7% of its 13F portfolio invested in the stock. Some other peers that are bullish include Ken Fisher’s Fisher Asset Management, Mario Gabelli’s GAMCO Investors and Cliff Asness’s AQR Capital Management.
Since Oceaneering International (NYSE:OII) has witnessed bearish sentiment from upper-tier hedge fund managers, we can see that there exists a select few hedge funds that decided to sell off their positions entirely last quarter. It’s worth mentioning that Ken Gray and Steve Walsh’s Bryn Mawr Capital dropped the largest position of the “upper crust” of funds we key on, worth an estimated $2.4 million in stock. Jeffrey Vinik’s fund, Vinik Asset Management, also said goodbye to its stock, about $1.3 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Oceaneering International (NYSE:OII)?
Insider buying made by high-level executives is at its handiest when the company in focus has seen transactions within the past six months. Over the latest half-year time frame, Oceaneering International (NYSE:OII) has seen 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 Oceaneering International (NYSE:OII). These stocks are Superior Energy Services, Inc. (NYSE:SPN), Oil States International, Inc. (NYSE:OIS), MDU Resources Group Inc (NYSE:MDU), Weatherford International Ltd (NYSE:WFT), and Core Laboratories N.V. (NYSE:CLB). This group of stocks belong to the oil & gas equipment & services industry and their market caps resemble OII’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Superior Energy Services, Inc. (NYSE:SPN)||24||0||0|
|Oil States International, Inc. (NYSE:OIS)||35||0||0|
|MDU Resources Group Inc (NYSE:MDU)||9||0||0|
|Weatherford International Ltd (NYSE:WFT)||28||0||0|
|Core Laboratories N.V. (NYSE:CLB)||11||0||0|
Using the returns shown by the previously mentioned studies, average investors must always watch hedge fund and insider trading activity, and Oceaneering International (NYSE:OII) is an important part of this process.