Of the funds we track, Jim Simons’s Renaissance Technologies had the biggest position in Empresa Nacional de Electricidad (ADR) (NYSE:EOC), worth close to $7.6 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Israel Englander of Millennium Management, with a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include D. E. Shaw’s D E Shaw, Jane Mendillo’s Harvard Management Co and Cliff Asness’s AQR Capital Management.
At year’s end, a total of 8 of the hedge funds we track were long in this stock, a change of 33% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings substantially.
In today’s marketplace, there are dozens of indicators market participants can use to monitor their holdings. Two of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can outperform their index-focused peers by a significant margin (see just how much).
Looking at the chart above, EOC’s low point in its 52 week range is $44.53 per share, with $54.31 as the 52 week high point — that compares with a last trade of $49.92.
In trading on Thursday, shares of Empresa Nacional de Electricidad S.A. (NYSE: EOC) crossed below their 200 day moving average of $49.74, changing hands as low as $49.69 per share. Empresa Nacional de Electricidad S.A. shares are currently trading off about 0.1% on the day. The chart below shows the one year performance of EOC shares, versus its 200 day moving average:
Just as key, optimistic insider trading activity is a second way to parse down the marketplace. Obviously, there are many stimuli for a bullish insider to downsize shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this method if “monkeys” know what to do (learn more here).