Is Imperial Oil Limited (USA) (NYSEAMEX:IMO) a healthy stock for your portfolio? Hedge funds are becoming hopeful. The number of long hedge fund positions advanced by 1 lately.
In the financial world, there are plenty of indicators shareholders can use to monitor Mr. Market. 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 best picks of the best fund managers can outperform their index-focused peers by a significant amount (see just how much).
Just as integral, positive insider trading sentiment is another way to break down the financial markets. Obviously, there are many incentives for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the useful potential of this strategy if piggybackers know where to look (learn more here).
Consequently, we’re going to take a look at the key action regarding Imperial Oil Limited (USA) (NYSEAMEX:IMO).
How have hedgies been trading Imperial Oil Limited (USA) (NYSEAMEX:IMO)?
At Q1’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of 10% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings significantly.
Of the funds we track, Daniel Bubis’s Tetrem Capital Management had the biggest position in Imperial Oil Limited (USA) (NYSEAMEX:IMO), worth close to $74.2 million, accounting for 2.2% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $19.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Ray Dalio’s Bridgewater Associates, D. E. Shaw’s D E Shaw and Steven Cohen’s SAC Capital Advisors.
As aggregate interest increased, specific money managers have been driving this bullishness. Millennium Management, managed by Israel Englander, initiated the most valuable position in Imperial Oil Limited (USA) (NYSEAMEX:IMO). Millennium Management had 1.9 million invested in the company at the end of the quarter. Ken Gray and Steve Walsh’s Bryn Mawr Capital also initiated a $1.2 million position during the quarter. The following funds were also among the new IMO investors: Cliff Asness’s AQR Capital Management and David Costen Haley’s HBK Investments.
How are insiders trading Imperial Oil Limited (USA) (NYSEAMEX:IMO)?
Insider buying is at its handiest when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time period, Imperial Oil Limited (USA) (NYSEAMEX:IMO) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Imperial Oil Limited (USA) (NYSEAMEX:IMO). These stocks are Marathon Oil Corporation (NYSE:MRO), Hess Corp. (NYSE:HES), Valero Energy Corporation (NYSE:VLO), Phillips 66 (NYSE:PSX), and Marathon Petroleum Corp (NYSE:MPC). This group of stocks belong to the oil & gas refining & marketing industry and their market caps are closest to IMO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Marathon Oil Corporation (NYSE:MRO) | 39 | 0 | 2 |
| Hess Corp. (NYSE:HES) | 59 | 10 | 8 |
| Valero Energy Corporation (NYSE:VLO) | 56 | 0 | 10 |
| Phillips 66 (NYSE:PSX) | 48 | 0 | 1 |
| Marathon Petroleum Corp (NYSE:MPC) | 49 | 0 | 5 |
With the results demonstrated by our tactics, retail investors must always keep an eye on hedge fund and insider trading activity, and Imperial Oil Limited (USA) (NYSEAMEX:IMO) applies perfectly to this mantra.
