Is Mcmoran Exploration Co (NYSE:MMR) a buy right now? The best stock pickers are in an optimistic mood. The number of long hedge fund bets advanced by 9 lately.
In the 21st century investor’s toolkit, there are many indicators shareholders can use to track the equity markets. Some of the most underrated 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 elite money managers can outclass the S&P 500 by a healthy amount (see just how much).
Equally as integral, optimistic insider trading activity is a second way to break down the financial markets. Just as you’d expect, there are many stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if investors know what to do (learn more here).
Keeping this in mind, let’s take a peek at the recent action encompassing Mcmoran Exploration Co (NYSE:MMR).
What have hedge funds been doing with Mcmoran Exploration Co (NYSE:MMR)?
Heading into 2013, a total of 28 of the hedge funds we track held long positions in this stock, a change of 47% from the previous quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings considerably.
According to our comprehensive database, Paulson & Co, managed by John Paulson, holds the biggest position in Mcmoran Exploration Co (NYSE:MMR). Paulson & Co has a $250 million position in the stock, comprising 1.5% of its 13F portfolio. Coming in second is Omega Advisors, managed by Leon Cooperman, which held a $146 million position; the fund has 2.7% of its 13F portfolio invested in the stock. Some other peers that are bullish include Robert Emil Zoellner’s Alpine Associates, Kevin D. Eng’s Columbus Hill Capital Management and Matthew Halbower’s Pentwater Capital Management.
As industrywide interest jumped, specific money managers have jumped into Mcmoran Exploration Co (NYSE:MMR) headfirst. Paulson & Co, managed by John Paulson, assembled the largest position in Mcmoran Exploration Co (NYSE:MMR). Paulson & Co had 250 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also initiated a $106 million position during the quarter. The following funds were also among the new MMR investors: Eric Mindich’s Eton Park Capital, Carl Tiedemann and Michael Tiedemann’s TIG Advisors, and Thomas Steyer’s Farallon Capital.
Insider trading activity in Mcmoran Exploration Co (NYSE:MMR)
Insider buying is best served when the company we’re looking at has seen transactions within the past 180 days. Over the latest 180-day time frame, Mcmoran Exploration Co (NYSE:MMR) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
With the results shown by the aforementioned strategies, everyday investors must always monitor hedge fund and insider trading sentiment, and Mcmoran Exploration Co (NYSE:MMR) is no exception.
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