EOG Resources Inc (NYSE:EOG) investors should pay attention to the following data. Chances are, you’ve never seen it before.
Now, according to many traders, hedge funds are perceived as delayed, old financial tools of a forgotten age. Although there are more than 8,000 hedge funds with their doors open currently, this site focuses on the masters of this club, close to 525 funds. It is assumed that this group oversees the lion’s share of the smart money’s total assets, and by watching their best investments, we’ve identified a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as key, bullish insider trading activity is another way to analyze the stock market universe. As the old adage goes: there are plenty of reasons for a corporate insider to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this tactic if “monkeys” know what to do (learn more here).
Thus, let’s examine the recent info about EOG Resources Inc (NYSE:EOG).
Hedge fund activity in EOG Resources Inc (NYSE:EOG)
At Q2’s end, a total of 48 of the hedge funds we track held long positions in this stock, a change of 20% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably.
When using filings from the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in EOG Resources Inc (NYSE:EOG). Citadel Investment Group has a $280.1 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Diamond Hill Capital, managed by Ric Dillon, which held a $209.2 million position; 2.3% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Steven Cohen’s SAC Capital Advisors, Phill Gross and Robert Atchinson’s Adage Capital Management and Sean Cullinan’s Point State Capital.
As one would understandably expect, particular hedge funds were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, assembled the most valuable position in EOG Resources Inc (NYSE:EOG). Citadel Investment Group had 280.1 million invested in the company at the end of the quarter. Ric Dillon’s Diamond Hill Capital also made a $209.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Steven Cohen’s SAC Capital Advisors, Phill Gross and Robert Atchinson’s Adage Capital Management, and Sean Cullinan’s Point State Capital.
What have insiders been doing with EOG Resources Inc (NYSE:EOG)?
Insider buying made by high-level executives is at its handiest when the primary stock in question has experienced transactions within the past six months. Over the latest six-month time frame, EOG Resources Inc (NYSE:EOG) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to EOG Resources Inc (NYSE:EOG). These stocks are Devon Energy Corp (NYSE:DVN), Suncor Energy Inc. (USA) (NYSE:SU), Anadarko Petroleum Corporation (NYSE:APC), Apache Corporation (NYSE:APA), and Canadian Natural Resource Ltd (USA) (NYSE:CNQ). All of these stocks are in the independent oil & gas industry and their market caps are similar to EOG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Devon Energy Corp (NYSE:DVN) | 42 | 0 | 1 |
| Suncor Energy Inc. (USA) (NYSE:SU) | 33 | 0 | 0 |
| Anadarko Petroleum Corporation (NYSE:APC) | 65 | 0 | 2 |
| Apache Corporation (NYSE:APA) | 44 | 5 | 1 |
| Canadian Natural Resource Ltd (USA) (NYSE:CNQ) | 23 | 0 | 0 |
Using the returns shown by the previously mentioned strategies, average investors should always pay attention to hedge fund and insider trading sentiment, and EOG Resources Inc (NYSE:EOG) applies perfectly to this mantra.
