Hedge Funds Aren’t Crazy About Ormat Technologies, Inc. (ORA) Anymore

Ormat Technologies, Inc. (NYSE:ORA) was in 7 hedge funds’ portfolio at the end of the first quarter of 2013. ORA has experienced a decrease in activity from the world’s largest hedge funds in recent months. There were 8 hedge funds in our database with ORA holdings at the end of the previous quarter.

In the 21st century investor’s toolkit, there are many metrics market participants can use to monitor the equity markets. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can outperform the market by a solid margin (see just how much).

Just as integral, optimistic insider trading activity is another way to parse down the financial markets. Obviously, there are a variety of stimuli for an upper level exec to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this method if piggybackers know what to do (learn more here).

Consequently, let’s take a gander at the latest action encompassing Ormat Technologies, Inc. (NYSE:ORA).

How are hedge funds trading Ormat Technologies, Inc. (NYSE:ORA)?

In preparation for this quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -13% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings meaningfully.

When looking at the hedgies we track, Levin Capital Strategies, managed by John A. Levin, holds the most valuable position in Ormat Technologies, Inc. (NYSE:ORA). Levin Capital Strategies has a $4.2 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Philip Hempleman of Ardsley Partners, with a $4.1 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Mario Gabelli’s GAMCO Investors, D. E. Shaw’s D E Shaw and Jim Simons’s Renaissance Technologies.

Seeing as Ormat Technologies, Inc. (NYSE:ORA) has faced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of money managers that slashed their entire stakes last quarter. At the top of the heap, Ian Simm’s Impax Asset Management said goodbye to the biggest investment of the 450+ funds we key on, valued at about $14.4 million in stock.. Israel Englander’s fund, Millennium Management, also said goodbye to its stock, about $0.4 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 1 funds last quarter.

Insider trading activity in Ormat Technologies, Inc. (NYSE:ORA)

Insider buying is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the latest 180-day time period, Ormat Technologies, Inc. (NYSE:ORA) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Ormat Technologies, Inc. (NYSE:ORA). These stocks are UIL Holdings Corporation (NYSE:UIL), Black Hills Corp (NYSE:BKH), Atlantic Power Corp (NYSE:AT), El Paso Electric Company (NYSE:EE), and The Empire District Electric Company (NYSE:EDE). All of these stocks are in the electric utilities industry and their market caps resemble ORA’s market cap.

With the results exhibited by our strategies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Ormat Technologies, Inc. (NYSE:ORA) is no exception.

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