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China Investment Corp: insider trades

10% owner, Other at 3 companies we cover. No open-market purchases and 11 sales not made under a pre-set plan, reported from July 23, 2010 to August 19, 2021.

What happened after China Investment Corp’s sales?

After their sales, the shares moved −30.0% against the index over 12 months on average (a negative figure means selling was the right call); 100% trailed it.

With 296 insiders tested, some will look skilled or unskilled by chance alone: when we replaced each insider’s stocks with random companies bought on the same days, about 5.7 cleared the bar ahead and 23.3 behind. One record on its own proves little.

Trade by trade

MeasuredTrades countedAverage vs S&P 500MedianWent the right wayYearst-statisticp-valueEvidence
Purchases, 3 months after the report 0 — — — — — — Not enough years
Purchases, 6 months after the report 0 — — — — — — Not enough years
Purchases, 12 months after the report 0 — — — — — — Not enough years
Purchases, 12 months after the trade 0 — — — — — — Not enough years
Sales, 3 months after the report 11 −11.9% −15.4% 91% 4 −1.43 0.25 No reliable evidence
Sales, 12 months after the report 11 −30.0% −36.0% 100% 4 −2.51 0.087 No reliable evidence
Sales, 12 months after the trade 11 −30.8% −35.3% 100% 4 −3.07 0.055 No reliable evidence

“Average vs S&P 500” is the stock’s return including dividends minus the index’s over the same dates, from the close on the first trading day after the report, or from the close on the trade date. Only windows that have finished are counted. For sales, a negative figure means the stock lagged after it was sold, so selling was the right call (green). “Went the right way” is the share of purchases that beat the index, or of sales that trailed it. The t-statistic uses one average per year of reports, because one person’s trades bunch into the same stock and weeks, and needs trades in at least four different years; the p-value comes from the t distribution with that number of years (with four years, a t of 2 has p = 0.14). “Some evidence” means p under 5%, “strong evidence” p under 1% over at least six years.

Companies traded

CompanyTitle on the latest filingPurchasesSalesFirst reportLatest report
Morgan Stanley MS —08July 23, 2010August 11, 2010
AES Corporation AES —02August 2, 2011December 18, 2013
TPG RE Finance Trust, Inc. TRTX —01August 19, 2021August 19, 2021

Trades and what followed

Moves are against the S&P 500; green means the trade went the insider’s way.

ReportedTradedCompanyTradeValue3 months after report12 months after report12 months after trade
August 19, 2021August 17, 2021 TRTX Sale $12,330,000 +2.3%−7.2%−9.0%
December 18, 2013December 18, 2013 AES Sale $864,480,000 −4.6%−19.7%−21.7%
August 2, 2011July 29, 2011 AES Sale $328,985 −3.6%−7.0%−11.1%
August 11, 2010August 9, 2010 MS Sale $43,872,000 −11.1%−39.9%−38.5%
August 5, 2010August 3, 2010 MS Sale $36,051,200 −13.8%−36.0%−35.9%
August 4, 2010August 2, 2010 MS Sale $55,100,000 −15.4%−37.4%−35.3%
August 3, 2010July 30, 2010 MS Sale $90,514,000 −17.8%−37.9%−36.5%
August 2, 2010July 29, 2010 MS Sale $70,434,000 −16.2%−35.9%−36.9%
July 28, 2010July 27, 2010 MS Sale $132,843,750 −17.3%−36.9%−34.1%
July 27, 2010July 23, 2010 MS Sale $125,078,750 −18.1%−36.1%−34.8%
July 23, 2010July 21, 2010 MS Sale $138,544,000 −15.7%−35.4%−44.7%

Open-market purchases and sales of at least $10,000 in companies we cover, from SEC Form 4 filings; sales made under a pre-set Rule 10b5-1 plan are not shown. “Not yet” means the window has not finished or the share price was under $5 at entry. These are the shares’ moves after each trade: they say nothing about why China Investment Corp traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.