Echo Global Logistics, Inc. (ECHO): Insiders Are Buying, Should You?

Page 1 of 2

Echo Global Logistics, Inc. (NASDAQ:ECHO) was in 9 hedge funds’ portfolio at the end of March. ECHO has experienced an increase in enthusiasm from smart money recently. There were 7 hedge funds in our database with ECHO holdings at the end of the previous quarter.

To most stock holders, hedge funds are seen as unimportant, old financial vehicles of the past. While there are more than 8000 funds with their doors open today, we choose to focus on the masters of this group, close to 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total asset base, and by watching their top picks, we have formulated a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 (explore the details and some picks here).

Echo Global Logistics, Inc. (NASDAQ:ECHO)

Equally as integral, bullish insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are many reasons for an executive to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if you know what to do (learn more here).

With these “truths” under our belt, it’s important to take a gander at the key action surrounding Echo Global Logistics, Inc. (NASDAQ:ECHO).

How have hedgies been trading Echo Global Logistics, Inc. (NASDAQ:ECHO)?

At Q1′s end, a total of 9 of the hedge funds we track were long in this stock, a change of 29% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings meaningfully.

Of the funds we track, J. Carlo Cannell’s Cannell Capital had the biggest position in Echo Global Logistics, Inc. (NASDAQ:ECHO), worth close to $4.2 million, comprising 2.7% of its total 13F portfolio. The second largest stake is held by Catapult Capital Management, managed by Israel Englander, which held a $3.3 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Matthew Hulsizer’s PEAK6 Capital Management, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Now, key money managers were leading the bulls’ herd. PEAK6 Capital Management, managed by Matthew Hulsizer, established the most valuable call position in Echo Global Logistics, Inc. (NASDAQ:ECHO). PEAK6 Capital Management had 3.1 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also made a $0.4 million investment in the stock during the quarter.

How are insiders trading Echo Global Logistics, Inc. (NASDAQ:ECHO)?

Insider buying is best served when the company in focus has seen transactions within the past half-year. Over the latest 180-day time period, Echo Global Logistics, Inc. (NASDAQ:ECHO) has seen 1 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Echo Global Logistics, Inc. (NASDAQ:ECHO). These stocks are Arkansas Best Corporation (NASDAQ:ABFS), Universal Truckload Services, Inc. (NASDAQ:UACL), Marten Transport, Ltd (NASDAQ:MRTN), Saia Inc (NASDAQ:SAIA), and Celadon Group, Inc. (NYSE:CGI). This group of stocks are in the trucking industry and their market caps resemble ECHO’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs 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!