Is Revett Minerals Inc ADR (NYSEAMEX:RVM) a bargain? The best stock pickers are getting less bullish. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience
In today’s marketplace, there are plenty of methods investors can use to analyze the equity markets. A couple of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can trounce their index-focused peers by a very impressive amount (see just how much).
Equally as important, optimistic insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are plenty of motivations for an upper level exec to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if piggybackers understand where to look (learn more here).
Keeping this in mind, it’s important to take a glance at the latest action encompassing Revett Minerals Inc ADR (NYSEAMEX:RVM).
What have hedge funds been doing with Revett Minerals Inc ADR (NYSEAMEX:RVM)?
Heading into 2013, a total of 6 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their holdings considerably.
Of the funds we track, Charles Davidson’s Wexford Capital had the most valuable position in Revett Minerals Inc ADR (NYSEAMEX:RVM), worth close to $5.8 million, accounting for 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Libra Advisors, managed by Ranjan Tandon, which held a $4.7 million position; 2.7% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Chuck Royce’s Royce & Associates, Eric Sprott’s Sprott Asset Management and Jim Simons’s Renaissance Technologies.
What have insiders been doing with Revett Minerals Inc ADR (NYSEAMEX:RVM)?
Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time frame, Revett Minerals Inc ADR (NYSEAMEX:RVM) has experienced 2 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Revett Minerals Inc ADR (NYSEAMEX:RVM). These stocks are Rare Element Resources Ltd (NYSEAMEX:REE), James River Coal Company (NASDAQ:JRCC), Uranerz Energy Corp. (NYSEAMEX:URZ), and Novacopper Inc (NYSEAMEX:NCQ). All of these stocks are in the industrial metals & minerals industry and their market caps match RVM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Rare Element Resources Ltd (NYSEAMEX:REE) | 3 | 1 | 3 |
| James River Coal Company (NASDAQ:JRCC) | 10 | 0 | 0 |
| Uranerz Energy Corp. (NYSEAMEX:URZ) | 3 | 0 | 1 |
| Novacopper Inc (NYSEAMEX:NCQ) | 7 | 0 | 0 |
With the results exhibited by Insider Monkey’s strategies, retail investors should always watch hedge fund and insider trading activity, and Revett Minerals Inc ADR (NYSEAMEX:RVM) applies perfectly to this mantra.
