In the 21st century investor’s toolkit, there are tons of indicators investors can use to track the equity markets. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can outclass the broader indices by a solid amount (see just how much).
Just as crucial, positive insider trading activity is another way to analyze the investments you’re interested in. Obviously, there are many reasons for an executive to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this method if “monkeys” know what to do (learn more here).
What’s more, let’s study the recent info about Tesoro Corporation (NYSE:TSO).
Hedge fund activity in Tesoro Corporation (NYSE:TSO)
At the end of the second quarter, a total of 48 of the hedge funds we track were long in this stock, a change of 14% from the first quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes substantially.
According to our 13F database, D. E. Shaw’s D E Shaw had the most valuable position in Tesoro Corporation (NYSE:TSO), worth close to $175.4 million, comprising 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Rob Citrone of Discovery Capital Management, with a $111.2 million position; 1.2% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Crispin Odey’s Odey Asset Management Group, Cliff Asness’s AQR Capital Management and Robert Pohly’s Samlyn Capital.
As industrywide interest increased, certain bigger names have jumped into Tesoro Corporation (NYSE:TSO) headfirst. D E Shaw, managed by D. E. Shaw, initiated the biggest position in Tesoro Corporation (NYSE:TSO). D E Shaw had 175.4 million invested in the company at the end of the quarter. Rob Citrone’s Discovery Capital Management also made a $111.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Crispin Odey’s Odey Asset Management Group, Cliff Asness’s AQR Capital Management, and Robert Pohly’s Samlyn Capital.
What do corporate executives and insiders think about Tesoro Corporation (NYSE:TSO)?
Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past half-year. Over the latest six-month time frame, Tesoro Corporation (NYSE:TSO) has seen 2 unique insiders buying, and 6 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 Tesoro Corporation (NYSE:TSO). These stocks are CVR Energy, Inc. (NYSE:CVI), Ultrapar Participacoes SA (ADR) (NYSE:UGP), Murphy Oil Corporation (NYSE:MUR), HollyFrontier Corp (NYSE:HFC), and Access Midstream Partners LP (NYSE:ACMP). All of these stocks are in the oil & gas refining & marketing industry and their market caps match TSO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| CVR Energy, Inc. (NYSE:CVI) | 16 | 0 | 0 |
| Ultrapar Participacoes SA (ADR) (NYSE:UGP) | 7 | 0 | 0 |
| Murphy Oil Corporation (NYSE:MUR) | 21 | 1 | 10 |
| HollyFrontier Corp (NYSE:HFC) | 32 | 2 | 2 |
| Access Midstream Partners LP (NYSE:ACMP) | 5 | 0 | 0 |
Using the returns explained by the previously mentioned tactics, regular investors must always track hedge fund and insider trading activity, and Tesoro Corporation (NYSE:TSO) applies perfectly to this mantra.
