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Charles Clough is the founder of Clough Capital Partners, which reported nearly $5 Billion total assets in its last 13F filing. Clough has a B.A. from Boston College and an M.B.A. from University of Chicago. Fund managers devote significant resources to researching stocks and sometimes cross the line to try to obtain material non-public information before investing. Additionally, corporate insiders have material non-public information and they sometimes trade based on such information. Other times they have an edge because they know their companies and industries better than almost all other investors. We believe that by imitating the stock picks of these smartest investors in the world, investors are more likely to beat the market in the long term.

Below we compiled a list of 16 stocks both Clough and insiders are bullish about. All stocks are in Charles Clough’s portfolio at the end of June and were purchased by at least one insider over the past three months.

Company

Ticker

Value (x1000)

No. of Insiders

Return Since June

TRANSDIGM GROUP INC

TDG

59,454

1

-6.52%

HATTERAS FINANCIAL

HTS

47,729

1

-5.66%

OWENS ILL INC

OI

47,702

4

-37.16%

SOLAR CAPITAL LTD

SLRC

41,630

2

-15.81%

ANNALY CAPITAL

NLY

31,625

1

-3.38%

UNITED CONTINENTAL

UAL

30,798

1

-5.30%

ARES CAPITAL CORP

ARCC

29,732

5

-12.56%

SENSATA TECHNOLOGIES

ST

27,227

2

-23.00%

MARATHON OIL CORP

MRO

26,947

1

-26.95%

PENNANTPARK INVESTMENT

PNNT

24,536

1

-16.42%

T R W AUTOMOTIVE

TRW

24,453

1

-43.28%

M G M RESORTS INTL

MGM

23,264

2

-19.45%

ANADARKO PETROLEUM

APC

22,830

1

-8.94%

INVESCO MORTGAGE

IVR

21,755

5

-26.71%

PETROHAWK ENERGY

HK

21,261

1

AMERICAN CAPITAL AGENCY

AGNC

20,559

1

-0.51%

TRANSDIGM GROUP INC (NYSE:TDG): TD Group is a global designer, producer and supplier of highly engineered aircraft components. Clough invested $59 million in TDG at the end of the second quarter and the stock was purchased by one insider in recent three months. It has a market cap of $4.38B, a P/E ratio of 34.22, and returned -6.52% since the end of June. Alan Fournier and Stephen Mandel both invested over $200 million in TDG shares.

HATTERAS FINANCIAL CORP (NYSE:HTS): Hatteras Financial Corp is an externally managed mortgage real estate investment trust. Clough invested $48 million in HTS at the end of the second quarter and the stock was purchased by one insider in recent three months. It has a market cap of $1.93B, a P/E ratio of 6.24, and returned -5.66% since the end of June. James Melcher had over $50 million of HTS stocks.

OWENS ILL INC (NYSE:OI): Owens-Illinois, Inc. is a manufacturer of glass containers with 81 glass manufacturing plants in 21 countries. Clough invested $48 million in OI at the end of the second quarter and the stock was purchased by four insiders in recent three months. It has a market cap of $2.84B, a P/E ratio of 16.01, and lost 37.16% since the end of June. Alexander Roepers had $164 million invested in OI stocks.

SOLAR CAPITAL LTD (NASDAQ:SLRC): Solar Capital is a clean energy company. Clough invested $42 million in SLRC at the end of the second quarter and the stock was purchased by two insiders in recent three months. It has a market cap of $756.49M and returned -15.81% since the end of June. Alec Litowitz and Ross Laser invested $66 million in SLRC. Bill Miller also had nearly $20 million of SLRC shares (see Bill Miller’s top stock picks).

ANNALY CAPITAL (NYSE:NLY): Annaly Capital Management, Inc. owns, manages and finances a portfolio of real estate related investments. Clough invested $32 million in NLY at the end of the second quarter and the stock was purchased by one insider in recent three months. It has a market cap of $16.92B, a P/E ratio of 6.10, and returned -3.38% since the end of June. Bill Miller invested $66 million in NLY shares.

UNITED CONTINENTAL HOLDINGS INC (NYSE:UAL): UAL is an airline holdings company. Clough invested $31 million in UAL at the end of the second quarter and the stock was purchased by one insider in recent three months. It has a market cap of $6.89B, a P/E ratio of 15.10, and returned -5.30% since the end of June. Paul Reeder and Edward Shapiro had over $250 million of UAL stocks. Bill Miller also invested nearly $200 million in UAL.

ARES CAPITAL CORP (NASDAQ:ARCC): Ares Capital is a closed-end, non-diversified management investment company. Clough invested $30 million in ARCC at the end of the second quarter and the stock was purchased by five insiders in recent three months. It has a market cap of $2.87B, a P/E ratio of 6.25, and returned -12.56% since the end of June. Scott Scher and Michael Prober had $40 million of ARCC stocks.

SENSATA TECHNOLOGIES (NYSE:ST): Sensata Technologies is engaged in the development, manufacture and sale of sensors and controls. Clough invested 27 million in ST at the end of the second quarter and the stock was purchased by two insiders in recent three months. It has a market cap of $5.25B and lost 23% since the end of June. James Crichton and Adam Weiss almost $400 million in ST stocks.

MARATHON OIL CORP (NYSE:MRO): Marathon is an integrated international energy company. Clough invested $27 million in MRO at the end of the second quarter and the stock was purchased by one insider in recent three months. It has a market cap of $16.89B, a P/E ratio of 6.77, and returned -26.95% since the end of June. Eric Mindich and Michael Karsch both invested more than $200 million in MRO (check out Mindich’s top stock picks).

AMERICAN CAPITAL AGENCY CORP (NASDAQ:AGNC): AGNC is a real estate investment trust. Clough invested $21 million in AGNC at the end of the second quarter and the stock was purchased by one insider in recent three months. It has a market cap of $4.92B and a P/E ratio of 3.92. AGNC is the best performing stock on the list above. It lost 0.51% vs. -11.46% for S&P 500 (NYSEARCA:SPY) since the end of June. John Burbank had over $200 million invested in AGNC.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Charles Clough And Insiders Are Bullish About These Stocks