Do Hedge Funds and Insiders Love QEP Resources Inc (NYSE:QEP)?

QEP Resources Inc (NYSE:QEP) was in 20 hedge funds’ portfolio at the end of December. QEP investors should pay attention to a decrease in support from the world’s most elite money managers of late. There were 23 hedge funds in our database with QEP holdings at the end of the previous quarter.

In today’s marketplace, there are plenty of gauges market participants can use to monitor stocks. A pair of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform the S&P 500 by a superb margin (see just how much).

Equally as key, bullish insider trading activity is another way to parse down the marketplace. Obviously, there are many incentives for an executive to sell shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the useful potential of this tactic if piggybackers know where to look (learn more here).

With these “truths” under our belt, it’s important to take a look at the key action regarding QEP Resources Inc (NYSE:QEP).

How are hedge funds trading QEP Resources Inc (NYSE:QEP)?

In preparation for this year, a total of 20 of the hedge funds we track were bullish in this stock, a change of -13% from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were increasing their stakes substantially.

Of the funds we track, JANA Partners, managed by Barry Rosenstein, holds the biggest position in QEP Resources Inc (NYSE:QEP). JANA Partners has a $267 million position in the stock, comprising 7.6% of its 13F portfolio. Sitting at the No. 2 spot is Michael Lowenstein of Kensico Capital, with a $55 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Frank Brosens’s Taconic Capital, Jeffrey Tannenbaum’s Fir Tree and Ken Griffin’s Citadel Investment Group.

Due to the fact that QEP Resources Inc (NYSE:QEP) has experienced bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of funds that decided to sell off their entire stakes heading into 2013. It’s worth mentioning that SAC Subsidiary’s Sigma Capital Management sold off the largest stake of all the hedgies we track, totaling an estimated $19 million in stock.. Jim Simons’s fund, Renaissance Technologies, also said goodbye to its stock, about $16 million worth. These transactions are important to note, as total hedge fund interest fell by 3 funds heading into 2013.

What do corporate executives and insiders think about QEP Resources Inc (NYSE:QEP)?

Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, QEP Resources Inc (NYSE:QEP) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s tactics, retail investors must always watch hedge fund and insider trading activity, and QEP Resources Inc (NYSE:QEP) is no exception.

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