Now, according to many market players, hedge funds are perceived as delayed, outdated financial tools of a forgotten age. Although there are In excess of 8,000 hedge funds in operation today, this site focuses on the masters of this club, close to 525 funds. It is assumed that this group controls most of the hedge fund industry’s total capital, and by watching their best stock picks, we’ve uncovered a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as crucial, positive insider trading activity is a second way to analyze the world of equities. There are a number of stimuli for an insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this method if “monkeys” understand where to look (learn more here).
Now that that’s out of the way, it’s important to analyze the newest info about Enbridge Inc (USA) (NYSE:ENB).
Hedge fund activity in Enbridge Inc (USA) (NYSE:ENB)
In preparation for the third quarter, a total of 18 of the hedge funds we track were long in this stock, a change of 80% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, Phill Gross and Robert Atchinson’s Adage Capital Management had the biggest position in Enbridge Inc (USA) (NYSE:ENB), worth close to $109.4 million, accounting for 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Carlson Capital, managed by Clint Carlson, which held a $34.5 million position; 0.4% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Jonathon Jacobson’s Highfields Capital Management, Daniel Bubis’s Tetrem Capital Management and Jim Simons’s Renaissance Technologies.
Consequently, certain bigger names were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, created the largest position in Enbridge Inc (USA) (NYSE:ENB). Adage Capital Management had 109.4 million invested in the company at the end of the quarter. Clint Carlson’s Carlson Capital also initiated a $34.5 million position during the quarter. The following funds were also among the new ENB investors: Jonathon Jacobson’s Highfields Capital Management, Daniel Bubis’s Tetrem Capital Management, and Jim Simons’s Renaissance Technologies.
How have insiders been trading Enbridge Inc (USA) (NYSE:ENB)?
Insider buying made by high-level executives is most useful when the company in focus has experienced transactions within the past half-year. Over the latest six-month time period, Enbridge Inc (USA) (NYSE:ENB) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Enbridge Inc (USA) (NYSE:ENB). These stocks are Plains All American Pipeline, L.P. (NYSE:PAA), Spectra Energy Corp. (NYSE:SE), Williams Companies, Inc. (NYSE:WMB), Kinder Morgan Energy Partners LP (NYSE:KMP), and Kinder Morgan Inc (NYSE:KMI). This group of stocks belong to the oil & gas pipelines industry and their market caps are closest to ENB’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Plains All American Pipeline, L.P. (NYSE:PAA) | 10 | 0 | 0 |
| Spectra Energy Corp. (NYSE:SE) | 22 | 0 | 0 |
| Williams Companies, Inc. (NYSE:WMB) | 44 | 0 | 0 |
| Kinder Morgan Energy Partners LP (NYSE:KMP) | 14 | 0 | 0 |
| Kinder Morgan Inc (NYSE:KMI) | 51 | 0 | 0 |
Using the returns demonstrated by Insider Monkey’s tactics, average investors should always keep one eye on hedge fund and insider trading sentiment, and Enbridge Inc (USA) (NYSE:ENB) applies perfectly to this mantra.
