Do Hedge Funds and Insiders Love Canadian Pacific Railway Limited (USA) (CP)?

Who loves Canadian Pacific Railway Limited (USA) (NYSE:CP)?

In the 21st century investor’s toolkit, there are dozens of methods shareholders can use to watch publicly traded companies. A pair of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can beat the broader indices by a healthy margin (see just how much).

Equally as useful, positive insider trading sentiment is a second way to look at the investments you’re interested in. There are a number of incentives for an executive to drop shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the useful potential of this strategy if investors understand where to look (learn more here).

Furthermore, it’s important to discuss the newest info about Canadian Pacific Railway Limited (USA) (NYSE:CP).

What have hedge funds been doing with Canadian Pacific Railway Limited (USA) (NYSE:CP)?

At Q2’s end, a total of 28 of the hedge funds we track held long positions in this stock, a change of -10% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.

According to our 13F database, Pershing Square, managed by Bill Ackman, holds the largest position in Canadian Pacific Railway Limited (USA) (NYSE:CP). Pershing Square has a $2.9325 billion position in the stock, comprising 26.8% of its 13F portfolio. Sitting at the No. 2 spot is OZ Management, managed by Daniel S. Och, which held a $492 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Donald Chiboucis’s Columbus Circle Investors, David Stemerman’s Conatus Capital Management and Steven Cohen’s SAC Capital Advisors.

Because Canadian Pacific Railway Limited (USA) (NYSE:CP) has experienced a fall in interest from upper-tier hedge fund managers, we can see that there exists a select few fund managers who were dropping their full holdings heading into Q2. At the top of the heap, Patrick Degorce’s Theleme Partners said goodbye to the biggest investment of the “upper crust” of funds we monitor, valued at an estimated $44.4 million in stock, and Sean Cullinan of Point State Capital was right behind this move, as the fund dumped about $36.9 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 3 funds heading into Q2.

Insider trading activity in Canadian Pacific Railway Limited (USA) (NYSE:CP)

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 last 180-day time frame, Canadian Pacific Railway Limited (USA) (NYSE:CP) 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 Canadian Pacific Railway Limited (USA) (NYSE:CP). These stocks are Union Pacific Corporation (NYSE:UNP), Canadian National Railway (USA) (NYSE:CNI), Kansas City Southern (NYSE:KSU), Norfolk Southern Corp. (NYSE:NSC), and CSX Corporation (NYSE:CSX). This group of stocks belong to the railroads industry and their market caps are similar to CP’s market cap.