This Metric Says You Are Smart to Buy Teck Resources Ltd (USA) (TCK)

Is it smart to be bullish on Teck Resources Ltd (USA) (NYSE:TCK)?

In the financial world, there are dozens of methods shareholders can use to analyze Mr. Market. Two of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can beat the broader indices by a solid margin (see just how much).

Just as key, positive insider trading sentiment is a second way to analyze the financial markets. As the old adage goes: there are plenty of motivations for an upper level exec to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this tactic if “monkeys” know what to do (learn more here).

What’s more, we’re going to study the latest info for Teck Resources Ltd (USA) (NYSE:TCK).

What have hedge funds been doing with Teck Resources Ltd (USA) (NYSE:TCK)?

Heading into Q3, a total of 15 of the hedge funds we track held long positions in this stock, a change of 7% from the previous quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.

According to our 13F database, Tetrem Capital Management, managed by Daniel Bubis, holds the largest position in Teck Resources Ltd (USA) (NYSE:TCK). Tetrem Capital Management has a $70.7 million position in the stock, comprising 2.4% of its 13F portfolio. Sitting at the No. 2 spot is Alec Litowitz and Ross Laser of Magnetar Capital, with a $38.6 million position; 1% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Jason Adler’s AlphaBet Management, Millennium Management Subsidiary’s Decade Capital Management and Israel Englander’s Millennium Management.

As aggregate interest spiked, certain money managers were leading the bulls’ herd. Tetrem Capital Management, managed by Daniel Bubis, assembled the most valuable position in Teck Resources Ltd (USA) (NYSE:TCK). Tetrem Capital Management had 70.7 million invested in the company at the end of the quarter. Alec Litowitz and Ross Laser’s Magnetar Capital also initiated a $38.6 million position during the quarter. The other funds with brand new TCK positions are Jason Adler’s AlphaBet Management, Millennium Management Subsidiary’s Decade Capital Management, and Israel Englander’s Millennium Management.

How are insiders trading Teck Resources Ltd (USA) (NYSE:TCK)?

Insider buying made by high-level executives is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time period, Teck Resources Ltd (USA) (NYSE:TCK) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Teck Resources Ltd (USA) (NYSE:TCK). These stocks are Peabody Energy Corporation (NYSE:BTU), Turquoise Hill Resources Ltd (NYSE:TRQ), Yanzhou Coal Mining Co Ltd (ADR) (NYSE:YZC), CONSOL Energy Inc. (NYSE:CNX), and Cameco Corporation (USA) (NYSE:CCJ). All of these stocks are in the industrial metals & minerals industry and their market caps are similar to TCK’s market cap.

Using the results explained by Insider Monkey’s studies, average investors must always track hedge fund and insider trading activity, and Teck Resources Ltd (USA) (NYSE:TCK) is an important part of this process.

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