Linn Energy LLC (LINE): Insiders Are Buying, Should You?

Linn Energy LLC (NASDAQ:LINE) was in 8 hedge funds’ portfolio at the end of December. LINE investors should be aware of an increase in hedge fund sentiment in recent months. There were 6 hedge funds in our database with LINE positions at the end of the previous quarter.

In today’s marketplace, there are many metrics shareholders can use to track Mr. Market. Some of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outperform their index-focused peers by a solid margin (see just how much).

Equally as beneficial, bullish insider trading activity is a second way to parse down the world of equities. Obviously, there are a number of stimuli for an executive to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this strategy if piggybackers understand what to do (learn more here).

With these “truths” under our belt, let’s take a gander at the latest action regarding Linn Energy LLC (NASDAQ:LINE).

Hedge fund activity in Linn Energy LLC (NASDAQ:LINE)

At the end of the fourth quarter, a total of 8 of the hedge funds we track held long positions in this stock, a change of 33% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings substantially.

According to our comprehensive database, Omega Advisors, managed by Leon Cooperman, holds the most valuable position in Linn Energy LLC (NASDAQ:LINE). Omega Advisors has a $150.5 million position in the stock, comprising 2.8% of its 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $29.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Richard Driehaus’s Driehaus Capital, Ken Griffin’s Citadel Investment Group and Ken Griffin’s Citadel Investment Group.

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, assembled the largest position in Linn Energy LLC (NASDAQ:LINE). Citadel Investment Group had 3.7 million invested in the company at the end of the quarter. William Michaelcheck’s Mariner Investment Group also made a $1.8 million investment in the stock during the quarter. The other funds with brand new LINE positions are Robert Raiff’s Raiff Partners and Scott Scher & Michael Prober’s Clovis Capital Management.

How have insiders been trading Linn Energy LLC (NASDAQ:LINE)?

Bullish insider trading is best served when the company in focus has seen transactions within the past half-year. Over the last 180-day time frame, Linn Energy LLC (NASDAQ:LINE) has seen 1 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 Linn Energy LLC (NASDAQ:LINE). These stocks are Plains Exploration & Production Company (NYSE:PXP), Talisman Energy Inc. (USA) (NYSE:TLM), Cimarex Energy Co (NYSE:XEC), Cobalt International Energy, Inc. (NYSE:CIE), and Denbury Resources Inc. (NYSE:DNR). This group of stocks are in the independent oil & gas industry and their market caps resemble LINE’s market cap.