Hedge Funds Are Betting On CMS Energy Corporation (CMS)
Is it smart to be bullish on CMS Energy Corporation (NYSE:CMS)?
In the 21st century investor’s toolkit, there are plenty of methods market participants can use to monitor publicly traded companies. Two of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outperform the S&P 500 by a solid margin (see just how much).
Just as necessary, bullish insider trading activity is another way to analyze the investments you're interested in. There are a number of reasons for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this tactic if you understand where to look (learn more here).
What's more, let's examine the latest info for CMS Energy Corporation (NYSE:CMS).
What does the smart money think about CMS Energy Corporation (NYSE:CMS)?
At Q2's end, a total of 20 of the hedge funds we track held long positions in this stock, a change of 11% from the previous quarter. With hedgies' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were upping their stakes substantially.
When using filings from the hedgies we track, Millennium Management, managed by Israel Englander, holds the most valuable position in CMS Energy Corporation (NYSE:CMS). Millennium Management has a $91.7 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is David Harding of Winton Capital Management, with a $45.3 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Phill Gross and Robert Atchinson's Adage Capital Management, D. E. Shaw's D E Shaw and Millennium Management Subsidiary's Decade Capital Management.
As aggregate interest spiked, specific money managers were breaking ground themselves. Millennium Management, managed by Israel Englander, created the most valuable position in CMS Energy Corporation (NYSE:CMS). Millennium Management had 91.7 million invested in the company at the end of the quarter. David Harding's Winton Capital Management also initiated a $45.3 million position during the quarter. The other funds with brand new CMS positions are Brian Taylor's Pine River Capital Management, Phill Gross and Robert Atchinson's Adage Capital Management, and D. E. Shaw's D E Shaw.
What do corporate executives and insiders think about CMS Energy Corporation (NYSE:CMS)?
Insider buying is most useful when the primary stock in question has seen transactions within the past six months. Over the last half-year time period, CMS Energy Corporation (NYSE:CMS) 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 CMS Energy Corporation (NYSE:CMS). These stocks are Calpine Corporation (NYSE:CPN), The AES Corporation (NYSE:AES), Pinnacle West Capital Corporation (NYSE:PNW), SCANA Corporation (NYSE:SCG), and OGE Energy Corp. (NYSE:OGE). This group of stocks belong to the electric utilities industry and their market caps are similar to CMS's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Calpine Corporation (NYSE:CPN)
The AES Corporation (NYSE:AES)
Pinnacle West Capital Corporation (NYSE:PNW)
SCANA Corporation (NYSE:SCG)
OGE Energy Corp. (NYSE:OGE)
Using the results explained by our studies, regular investors should always track hedge fund and insider trading sentiment, and CMS Energy Corporation (NYSE:CMS) is an important part of this process.