Do Hedge Funds and Insiders Love Pacer International, Inc. (PACR)?

Page 1 of 2

Pacer International, Inc. (NASDAQ:PACR) shareholders have witnessed an increase in hedge fund sentiment of late.

To most investors, hedge funds are viewed as slow, old investment vehicles of the past. While there are over 8000 funds in operation at present, we choose to focus on the leaders of this group, close to 450 funds. It is estimated that this group controls the majority of all hedge funds’ total capital, and by watching their top stock picks, we have discovered a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as beneficial, positive insider trading sentiment is a second way to break down the marketplace. As the old adage goes: there are a variety of reasons for an insider to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this tactic if “monkeys” understand where to look (learn more here).

Consequently, we’re going to take a gander at the recent action encompassing Pacer International, Inc. (NASDAQ:PACR).

Hedge fund activity in Pacer International, Inc. (NASDAQ:PACR)

At the end of the first quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of 22% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully.

Pacer International, Inc. (NASDAQ:PACR)Of the funds we track, Chuck Royce’s Royce & Associates had the most valuable position in Pacer International, Inc. (NASDAQ:PACR), worth close to $4.3 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Matthew Drapkin and Steven R. Becker of Becker Drapkin Management, with a $3.3 million position; 2.1% of its 13F portfolio is allocated to the company. Some other peers that are bullish include David Moradi’s Anthion Management, Cliff Asness’s AQR Capital Management and D. E. Shaw’s D E Shaw.

As one would reasonably expect, key money managers have been driving this bullishness. Becker Drapkin Management, managed by Matthew Drapkin and Steven R. Becker, initiated the largest position in Pacer International, Inc. (NASDAQ:PACR). Becker Drapkin Management had 3.3 million invested in the company at the end of the quarter. David Moradi’s Anthion Management also made a $1.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Glenn Russell Dubin’s Highbridge Capital Management, and Ken Griffin’s Citadel Investment Group.

Insider trading activity in Pacer International, Inc. (NASDAQ:PACR)

Insider purchases made by high-level executives is most useful when the company in focus has seen transactions within the past half-year. Over the last 180-day time period, Pacer International, Inc. (NASDAQ:PACR) has seen 5 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Pacer International, Inc. (NASDAQ:PACR). These stocks are Guangshen Railway Co. Ltd (ADR) (NYSE:GSH), American Railcar Industries, Inc. (NASDAQ:ARII), Greenbrier Companies Inc (NYSE:GBX), Providence & Worcester Railroad Company (NASDAQ:PWX), and FreightCar America, Inc. (NASDAQ:RAIL). This group of stocks are in the railroads industry and their market caps resemble PACR’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!