Is Kraton Performance Polymers Inc (KRA) Going to Burn These Hedge Funds?

Is Kraton Performance Polymers Inc (NYSE:KRA) a good investment?

In the financial world, there are a multitude of metrics investors can use to watch Mr. Market. Some of the most innovative 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 fund managers can outperform their index-focused peers by a healthy margin (see just how much).

Just as useful, positive insider trading sentiment is another way to look at the world of equities. There are a variety of motivations for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this tactic if shareholders know where to look (learn more here).

Furthermore, it’s important to discuss the latest info surrounding Kraton Performance Polymers Inc (NYSE:KRA).

What have hedge funds been doing with Kraton Performance Polymers Inc (NYSE:KRA)?

At the end of the second quarter, a total of 10 of the hedge funds we track were long in this stock, a change of 11% from the first quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings considerably.

When using filings from the hedgies we track, Thomas E. Claugus’s GMT Capital had the most valuable position in Kraton Performance Polymers Inc (NYSE:KRA), worth close to $66.8 million, accounting for 1.5% of its total 13F portfolio. Coming in second is Debra Fine of Fine Capital Partners, with a $44.6 million position; 4.1% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include Richard Rubin’s Hawkeye Capital, Cliff Asness’s AQR Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Now, certain money managers have jumped into Kraton Performance Polymers Inc (NYSE:KRA) headfirst. GMT Capital, managed by Thomas E. Claugus, created the largest position in Kraton Performance Polymers Inc (NYSE:KRA). GMT Capital had 66.8 million invested in the company at the end of the quarter. Debra Fine’s Fine Capital Partners also made a $44.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Richard Rubin’s Hawkeye Capital, Cliff Asness’s AQR Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

How have insiders been trading Kraton Performance Polymers Inc (NYSE:KRA)?

Legal insider trading, particularly when it’s bullish, is most useful when the company in focus has seen transactions within the past six months. Over the latest half-year time frame, Kraton Performance Polymers Inc (NYSE:KRA) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Kraton Performance Polymers Inc (NYSE:KRA). These stocks are Koppers Holdings Inc. (NYSE:KOP), WD-40 Company (NASDAQ:WDFC), Flotek Industries Inc (NYSE:FTK), Quaker Chemical Corp (NYSE:KWR), and OM Group, Inc. (NYSE:OMG). All of these stocks are in the specialty chemicals industry and their market caps match KRA’s market cap.