This Metric Says You Are Smart to Buy LinnCo LLC (LNCO)

In the 21st century investor’s toolkit, there are plenty of indicators investors can use to track Mr. Market. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can trounce their index-focused peers by a healthy amount (see just how much).

Just as key, optimistic insider trading activity is another way to analyze the investments you’re interested in. Obviously, there are plenty of stimuli for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this tactic if shareholders understand what to do (learn more here).

Furthermore, let’s discuss the latest info about LinnCo LLC (NASDAQ:LNCO).

What have hedge funds been doing with LinnCo LLC (NASDAQ:LNCO)?

At the end of the second quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of 10% from one quarter earlier. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings meaningfully.

When using filings from the hedgies we track, Louis Bacon’s Moore Global Investments had the biggest position in LinnCo LLC (NASDAQ:LNCO), worth close to $40.5 million, comprising 1% of its total 13F portfolio. On Moore Global Investments’s heels is MD Sass, managed by Martin D. Sass, which held a $29.7 million position; 2.4% of its 13F portfolio is allocated to the company. Some other hedgies with similar optimism include Leon Cooperman’s Omega Advisors, and John Overdeck and David Siegel’s Two Sigma Advisors.

Now, particular hedge funds were breaking ground themselves. Moore Global Investments, managed by Louis Bacon, assembled the most outsized position in LinnCo LLC (NASDAQ:LNCO). Moore Global Investments had 40.5 million invested in the company at the end of the quarter. Martin D. Sass’s MD Sass also made a $29.7 million investment in the stock during the quarter. The following funds were also among the new LNCO investors: Leon Cooperman’s Omega Advisors, Jeffrey Tannenbaum’s Fir Tree, and John Overdeck and David Siegel’s Two Sigma Advisors.

How have insiders been trading LinnCo LLC (NASDAQ:LNCO)?

Insider buying made by high-level executives is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time frame, LinnCo LLC (NASDAQ:LNCO) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to LinnCo LLC (NASDAQ:LNCO). These stocks are Gran Tierra Energy Inc. (NYSEAMEX:GTE), EXCO Resources Inc (NYSE:XCO), Bonanza Creek Energy Inc (NYSE:BCEI), PDC Energy Inc (NASDAQ:PDCE), and Crosstex Energy, L.P. (NASDAQ:XTEX). This group of stocks are in the independent oil & gas industry and their market caps resemble LNCO’s market cap.