Spectra Energy Corp. (NYSE:SE) was in 20 hedge funds’ portfolio at the end of March. SE has experienced an increase in hedge fund interest recently. There were 15 hedge funds in our database with SE holdings at the end of the previous quarter.
Just as key, optimistic insider trading activity is a second way to parse down the stock market universe. There are plenty of stimuli for a bullish insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this method if you understand what to do (learn more here).
Consequently, let’s take a look at the key action encompassing Spectra Energy Corp. (NYSE:SE).
Hedge fund activity in Spectra Energy Corp. (NYSE:SE)
In preparation for this quarter, a total of 20 of the hedge funds we track were bullish in this stock, a change of 33% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.
When looking at the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Spectra Energy Corp. (NYSE:SE). Citadel Investment Group has a $87.1 million position in the stock, comprising 0.1% of its 13F portfolio. On Citadel Investment Group’s heels is Tom Sandell of Sandell Asset Management, with a $61.9 million position; 12.3% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Dmitry Balyasny’s Balyasny Asset Management, Alec Litowitz and Ross Laser’s Magnetar Capital and Jim Simons’s Renaissance Technologies.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, initiated the most outsized position in Spectra Energy Corp. (NYSE:SE). Renaissance Technologies had 38.1 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $29 million investment in the stock during the quarter. The following funds were also among the new SE investors: D. E. Shaw’s D E Shaw, Clint Carlson’s Carlson Capital, and Dmitry Balyasny’s Balyasny Asset Management.
How are insiders trading Spectra Energy Corp. (NYSE:SE)?
Insider buying is particularly usable when the company in focus has seen transactions within the past six months. Over the latest half-year time frame, Spectra Energy Corp. (NYSE:SE) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Spectra Energy Corp. (NYSE:SE). These stocks are Oneok Partners LP (NYSE:OKS), Energy Transfer Partners LP (NYSE:ETP), Energy Transfer Equity, L.P. (NYSE:ETE), Williams Companies, Inc. (NYSE:WMB), and Plains All American Pipeline, L.P. (NYSE:PAA). All of these stocks are in the oil & gas pipelines industry and their market caps match SE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Oneok Partners LP (NYSE:OKS) | 4 | 1 | 0 |
| Energy Transfer Partners LP (NYSE:ETP) | 13 | 0 | 0 |
| Energy Transfer Equity, L.P. (NYSE:ETE) | 12 | 1 | 0 |
| Williams Companies, Inc. (NYSE:WMB) | 41 | 1 | 5 |
| Plains All American Pipeline, L.P. (NYSE:PAA) | 11 | 0 | 3 |
With the results demonstrated by the aforementioned studies, everyday investors should always monitor hedge fund and insider trading activity, and Spectra Energy Corp. (NYSE:SE) applies perfectly to this mantra.
