Imperial Oil Limited (USA) (IMO): Hedge Funds Aren’t Crazy About It, Insider Sentiment Unchanged
In the eyes of many of your fellow Imperial Oil Limited (USA) (NYSEAMEX:IMO) investors, hedge funds are perceived as overrated, old financial tools of an era lost to time. Although there are In excess of 8,000 hedge funds in operation in present day, this site focuses on the bigwigs of this club, close to 525 funds. Analysts calculate that this group has its hands on most of all hedge funds' total assets, and by paying attention to their highest performing picks, we've identified a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as crucial, bullish insider trading activity is another way to analyze the world of equities. Just as you'd expect, there are plenty of incentives for an upper level exec to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if "monkeys" know where to look (learn more here).
Thus, we're going to examine the latest info surrounding Imperial Oil Limited (USA) (NYSEAMEX:IMO).
What does the smart money think about Imperial Oil Limited (USA) (NYSEAMEX:IMO)?
In preparation for the third quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of -9% from one quarter earlier. With hedge funds' capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully.
When using filings from the hedgies we track, Tetrem Capital Management, managed by Daniel Bubis, holds the largest position in Imperial Oil Limited (USA) (NYSEAMEX:IMO). Tetrem Capital Management has a $27.8 million position in the stock, comprising 0.9% of its 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $17.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that hold long positions include Ray Dalio's Bridgewater Associates, D. E. Shaw's D E Shaw and Ken Gray and Steve Walsh's Bryn Mawr Capital.
Since Imperial Oil Limited (USA) (NYSEAMEX:IMO) has faced a fall in interest from the top-tier hedge fund industry, logic holds that there is a sect of hedge funds that slashed their full holdings last quarter. Interestingly, Israel Englander's Millennium Management cut the biggest position of the "upper crust" of funds we track, totaling close to $1.9 million in stock, and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund sold off about $0.6 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds last quarter.
What do corporate executives and insiders think about Imperial Oil Limited (USA) (NYSEAMEX:IMO)?
Bullish insider trading is best served when the company in focus has experienced transactions within the past six months. Over the latest 180-day time period, Imperial Oil Limited (USA) (NYSEAMEX:IMO) 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 Imperial Oil Limited (USA) (NYSEAMEX:IMO). These stocks are Marathon Oil Corporation (NYSE:MRO), Hess Corp. (NYSE:HES), Valero Energy Corporation (NYSE:VLO), Phillips 66 (NYSE:PSX), and Marathon Petroleum Corp (NYSE:MPC). This group of stocks are the members of the oil & gas refining & marketing industry and their market caps are similar to IMO's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Marathon Oil Corporation (NYSE:MRO)
Hess Corp. (NYSE:HES)
Valero Energy Corporation (NYSE:VLO)
Phillips 66 (NYSE:PSX)
Marathon Petroleum Corp (NYSE:MPC)
Using the returns shown by Insider Monkey's tactics, regular investors should always pay attention to hedge fund and insider trading activity, and Imperial Oil Limited (USA) (NYSEAMEX:IMO) applies perfectly to this mantra.