According to most investors, hedge funds are perceived as slow, outdated financial tools of the past. While there are more than 8000 funds in operation at present, we at Insider Monkey hone in on the top tier of this club, about 450 funds. It is estimated that this group oversees the lion’s share of the hedge fund industry’s total capital, and by keeping an eye on their highest performing picks, we have spotted a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum 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 topped the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).
Equally as integral, optimistic insider trading sentiment is a second way to parse down the marketplace. Obviously, there are many motivations for an executive to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this strategy if piggybackers understand where to look (learn more here).
Now, we’re going to take a look at the recent action encompassing Aegean Marine Petroleum Network Inc. (NYSE:ANW).
How are hedge funds trading Aegean Marine Petroleum Network Inc. (NYSE:ANW)?
Heading into 2013, a total of 9 of the hedge funds we track were bullish in this stock, a change of 13% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings considerably.
According to our comprehensive database, Andy Redleaf’s Whitebox Advisors had the largest position in Aegean Marine Petroleum Network Inc. (NYSE:ANW), worth close to $3.3 million, accounting for 0.2% of its total 13F portfolio. On Whitebox Advisors’s heels is Israel Englander of Millennium Management, with a $0.9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers with similar optimism include Ken Brodkowitz and Mike Vermut’s Newland Capital, Ken Griffin’s Citadel Investment Group and Ken Gray and Steve Walsh’s Bryn Mawr Capital.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Newland Capital, managed by Ken Brodkowitz and Mike Vermut, assembled the most outsized position in Aegean Marine Petroleum Network Inc. (NYSE:ANW). Newland Capital had 0.5 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $0.4 million position during the quarter. The only other fund with a new position in the stock is Mike Vranos’s Ellington.
What do corporate executives and insiders think about Aegean Marine Petroleum Network Inc. (NYSE:ANW)?
Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past six months. Over the latest six-month time period, Aegean Marine Petroleum Network Inc. (NYSE:ANW) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Aegean Marine Petroleum Network Inc. (NYSE:ANW). These stocks are China Armco Metals, Inc (NYSEAMEX:CNAM), Macquarie Infrastructure Company LLC (NYSE:MIC) and L.B. Foster Company (NASDAQ:FSTR). All of these stocks are in the basic materials wholesale industry and their market caps are similar to ANW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| China Armco Metals, Inc (NYSEAMEX:CNAM) | 1 | 0 | 0 |
| Macquarie Infrastructure Company LLC (NYSE:MIC) | 24 | 1 | 1 |
| L.B. Foster Company (NASDAQ:FSTR) | 11 | 1 | 1 |
With the returns demonstrated by our strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Aegean Marine Petroleum Network Inc. (NYSE:ANW) is no exception.
