Should EnCana Corporation (USA) (NYSE:ECA) investors keep in mind the following data?
To the average investor, there are dozens of metrics investors can use to monitor stocks. A duo of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the market by a very impressive margin (see just how much).
Equally as crucial, bullish insider trading sentiment is another way to analyze the marketplace. As the old adage goes: there are plenty of reasons for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this tactic if investors understand what to do (learn more here).
What’s more, let’s study the latest info about EnCana Corporation (USA) (NYSE:ECA).
What have hedge funds been doing with EnCana Corporation (USA) (NYSE:ECA)?
At the end of the second quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 29% from one quarter earlier. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes meaningfully.
Out of the hedge funds we follow, Harris Associates, managed by Natixis Global Asset Management, holds the largest position in EnCana Corporation (USA) (NYSE:ECA). Harris Associates has a $274.5 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $89 million position; 0.2% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Steven Cohen’s SAC Capital Advisors, Martin Whitman’s Third Avenue Management and Anand Parekh’s Alyeska Investment Group.
With a general bullishness amongst the titans, particular hedge funds have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, assembled the most outsized position in EnCana Corporation (USA) (NYSE:ECA). Citadel Investment Group had 89 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $68.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Martin Whitman’s Third Avenue Management, Anand Parekh’s Alyeska Investment Group, and Daniel Bubis’s Tetrem Capital Management.
How have insiders been trading EnCana Corporation (USA) (NYSE:ECA)?
Insider buying is at its handiest when the company in question has seen transactions within the past six months. Over the last half-year time period, EnCana Corporation (USA) (NYSE:ECA) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to EnCana Corporation (USA) (NYSE:ECA). These stocks are Statoil ASA (ADR) (NYSE:STO), ConocoPhillips (NYSE:COP), Occidental Petroleum Corporation (NYSE:OXY), YPF SA (ADR) (NYSE:YPF), and Sasol Limited (ADR) (NYSE:SSL). This group of stocks are the members of the major integrated oil & gas industry and their market caps are closest to ECA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Statoil ASA (ADR) (NYSE:STO) | 13 | 0 | 0 |
| ConocoPhillips (NYSE:COP) | 45 | 0 | 0 |
| Occidental Petroleum Corporation (NYSE:OXY) | 63 | 0 | 0 |
| YPF SA (ADR) (NYSE:YPF) | 19 | 0 | 0 |
| Sasol Limited (ADR) (NYSE:SSL) | 4 | 0 | 0 |
Using the returns shown by the previously mentioned strategies, regular investors should always pay attention to hedge fund and insider trading activity, and EnCana Corporation (USA) (NYSE:ECA) is an important part of this process.
