Companhia Siderurgica Nacional (ADR) (NYSE:SID) shareholders have witnessed a decrease in hedge fund sentiment in recent months.
In the 21st century investor’s toolkit, there are dozens of gauges investors can use to track stocks. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can beat the broader indices by a healthy margin (see just how much).
Just as important, optimistic insider trading sentiment is another way to break down the financial markets. Just as you’d expect, there are many stimuli for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the impressive potential of this tactic if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, let’s take a peek at the latest action encompassing Companhia Siderurgica Nacional (ADR) (NYSE:SID).
How have hedgies been trading Companhia Siderurgica Nacional (ADR) (NYSE:SID)?
In preparation for this quarter, a total of 10 of the hedge funds we track were long in this stock, a change of -17% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings substantially.
Of the funds we track, Ionic Capital Management, managed by Bart Baum, holds the largest position in Companhia Siderurgica Nacional (ADR) (NYSE:SID). Ionic Capital Management has a $0.8 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $0.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Steven Cohen’s SAC Capital Advisors, Matthew Hulsizer’s PEAK6 Capital Management and Ken Griffin’s Citadel Investment Group.
Because Companhia Siderurgica Nacional (ADR) (NYSE:SID) has witnessed falling interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of funds that decided to sell off their entire stakes in Q1. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the biggest stake of the “upper crust” of funds we track, comprising an estimated $6.2 million in stock., and Jason Adler of AlphaBet Management was right behind this move, as the fund dumped about $3.8 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 2 funds in Q1.
How have insiders been trading Companhia Siderurgica Nacional (ADR) (NYSE:SID)?
Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the last six-month time period, Companhia Siderurgica Nacional (ADR) (NYSE:SID) has experienced 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 Companhia Siderurgica Nacional (ADR) (NYSE:SID). These stocks are United States Steel Corporation (NYSE:X), Nucor Corporation (NYSE:NUE), Gerdau SA (ADR) (NYSE:GGB), Steel Dynamics, Inc. (NASDAQ:STLD), and Ternium S.A. (ADR) (NYSE:TX). This group of stocks are the members of the steel & iron industry and their market caps resemble SID’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| United States Steel Corporation (NYSE:X) | 21 | 2 | 0 |
| Nucor Corporation (NYSE:NUE) | 26 | 0 | 1 |
| Gerdau SA (ADR) (NYSE:GGB) | 10 | 0 | 0 |
| Steel Dynamics, Inc. (NASDAQ:STLD) | 17 | 0 | 1 |
| Ternium S.A. (ADR) (NYSE:TX) | 9 | 0 | 0 |
With the results shown by the aforementioned studies, retail investors should always monitor hedge fund and insider trading activity, and Companhia Siderurgica Nacional (ADR) (NYSE:SID) is no exception.
