At the moment, there are dozens of metrics investors can use to monitor publicly traded companies. A pair 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 top picks of the best fund managers can trounce the market by a significant margin (see just how much).
Just as key, optimistic insider trading sentiment is another way to analyze the marketplace. There are many reasons for a corporate insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).
Thus, let’s examine the newest info about Accretive Health, Inc. (NYSE:AH).
How have hedgies been trading Accretive Health, Inc. (NYSE:AH)?
At the end of the second quarter, a total of 16 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Phill Gross and Robert Atchinson’s Adage Capital Management had the largest position in Accretive Health, Inc. (NYSE:AH), worth close to $35.2 million, accounting for 0.1% of its total 13F portfolio. Coming in second is North Run Capital, managed by Thomas Ellis and Todd Hammer, which held a $31.5 million position; 3.7% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Steven Cohen’s SAC Capital Advisors, D. E. Shaw’s D E Shaw and Edward Gilhuly and Scott Stuart’s Sageview Capital.
As Accretive Health, Inc. (NYSE:AH) has witnessed bearish sentiment from the smart money’s best and brightest, it’s safe to say that there was a specific group of funds that slashed their entire stakes in Q1. It’s worth mentioning that Brett Barakett’s Tremblant Capital sold off the biggest investment of the 450+ funds we watch, totaling about $22.8 million in stock, and SAC Subsidiary of CR Intrinsic Investors was right behind this move, as the fund sold off about $4.1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Accretive Health, Inc. (NYSE:AH)?
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time period, Accretive Health, Inc. (NYSE:AH) has seen zero unique insiders purchasing, 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 Accretive Health, Inc. (NYSE:AH). These stocks are FTI Consulting, Inc. (NYSE:FCN), Navigant Consulting, Inc. (NYSE:NCI), Exponent, Inc. (NASDAQ:EXPO), Wageworks Inc (NYSE:WAGE), and Huron Consulting Group (NASDAQ:HURN). All of these stocks are in the management services industry and their market caps are similar to AH’s market cap.