Should Kinder Morgan Management, LLC (NYSE:KMR) investors track the following data?
In the financial world, there are many gauges shareholders can use to watch stocks. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass the S&P 500 by a very impressive amount (see just how much).
Equally as key, optimistic insider trading activity is a second way to look at the investments you’re interested in. As the old adage goes: there are a variety of reasons for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this strategy if piggybackers understand where to look (learn more here).
What’s more, it’s important to examine the latest info surrounding Kinder Morgan Management, LLC (NYSE:KMR).
What does the smart money think about Kinder Morgan Management, LLC (NYSE:KMR)?
At Q2’s end, a total of 10 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Kinder Morgan Management, LLC (NYSE:KMR). Renaissance Technologies has a $17.3 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $16.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management and Matthew Hulsizer’s PEAK6 Capital Management.
Since Kinder Morgan Management, LLC (NYSE:KMR) has experienced declining interest from the top-tier hedge fund industry, we can see that there was a specific group of fund managers who were dropping their full holdings heading into Q2. At the top of the heap, Richard Driehaus’s Driehaus Capital sold off the largest stake of all the hedgies we monitor, totaling an estimated $5.8 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold of LMR Partners was right behind this move, as the fund cut about $4 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Kinder Morgan Management, LLC (NYSE:KMR)?
Insider buying made by high-level executives is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time frame, Kinder Morgan Management, LLC (NYSE:KMR) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Kinder Morgan Management, LLC (NYSE:KMR). These stocks are Oneok Partners LP (NYSE:OKS), Magellan Midstream Partners, L.P. (NYSE:MMP), Enbridge Energy Partners, L.P. (NYSE:EEP), Pembina Pipeline Corp (NYSE:PBA), and El Paso Pipeline Partners, L.P. (NYSE:EPB). This group of stocks are in the oil & gas pipelines industry and their market caps are closest to KMR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Oneok Partners LP (NYSE:OKS) | 7 | 0 | 0 |
| Magellan Midstream Partners, L.P. (NYSE:MMP) | 8 | 0 | 0 |
| Enbridge Energy Partners, L.P. (NYSE:EEP) | 7 | 0 | 0 |
| Pembina Pipeline Corp (NYSE:PBA) | 7 | 0 | 0 |
| El Paso Pipeline Partners, L.P. (NYSE:EPB) | 6 | 0 | 0 |
Using the returns explained by our analyses, average investors must always keep one eye on hedge fund and insider trading sentiment, and Kinder Morgan Management, LLC (NYSE:KMR) shareholders fit into this picture quite nicely.
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