SandRidge Energy Inc. (NYSE:SD) was in 28 hedge funds’ portfolio at the end of December. SD has seen an increase in enthusiasm from smart money lately. There were 19 hedge funds in our database with SD holdings at the end of the previous quarter.
In the financial world, there are tons of indicators investors can use to watch Mr. Market. Two of the most innovative 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 best money managers can outpace the market by a superb amount (see just how much).
Equally as important, bullish insider trading sentiment is a second way to parse down the stock market universe. As the old adage goes: there are a number of incentives for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the valuable potential of this tactic if you understand what to do (learn more here).
Consequently, it’s important to take a glance at the key action encompassing SandRidge Energy Inc. (NYSE:SD).
What have hedge funds been doing with SandRidge Energy Inc. (NYSE:SD)?
In preparation for this year, a total of 28 of the hedge funds we track were bullish in this stock, a change of 47% from the third quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings substantially.
When looking at the hedgies we track, Dinakar Singh’s TPG-AXON Management LP had the largest position in SandRidge Energy Inc. (NYSE:SD), worth close to $210 million, comprising 10.8% of its total 13F portfolio. The second largest stake is held by Fairfax Financial Holdings, managed by Prem Watsa, which held a $206 million position; 2.8% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Leon Cooperman’s Omega Advisors, Mark McGoldrick and Jason Maynard’s Mouth Kellett Capital Management and Wallace Weitz’s Wallace R. Weitz & Co..
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Omega Advisors, managed by Leon Cooperman, established the largest position in SandRidge Energy Inc. (NYSE:SD). Omega Advisors had 155 million invested in the company at the end of the quarter. Paul Singer’s Elliott Management also made a $35 million investment in the stock during the quarter. The other funds with brand new SD positions are Don Morgan’s Brigade Capital, and Richard Breeden’s Breeden Capital Management.
How have insiders been trading SandRidge Energy Inc. (NYSE:SD)?
Insider buying is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, SandRidge Energy Inc. (NYSE:SD) has experienced 1 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
With the returns demonstrated by the aforementioned strategies, retail investors should always keep an eye on hedge fund and insider trading sentiment, and SandRidge Energy Inc. (NYSE:SD) is an important part of this process.
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