To the average investor, there are plenty of methods market participants can use to monitor stocks. A duo of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outclass the market by a healthy margin (see just how much).
Equally as necessary, bullish insider trading activity is another way to analyze the financial markets. There are many reasons for an insider to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this method if piggybackers know where to look (learn more here).
Keeping this in mind, it's important to discuss the newest info for CapitalSource, Inc. (NYSE:CSE).
Heading into Q3, a total of 16 of the hedge funds we track held long positions in this stock, a change of 7% from the first quarter. With hedgies' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Ken Fisher's Fisher Asset Management had the biggest position in CapitalSource, Inc. (NYSE:CSE), worth close to $63.6 million, comprising 0.2% of its total 13F portfolio. The second largest stake is held by Amy Minella of Cardinal Capital, with a $51.5 million position; 3.3% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Jim Simons's Renaissance Technologies, Ken Griffin's Citadel Investment Group and Gregg J. Powers's Private Capital Management.
As industrywide interest increased, particular hedge funds have jumped into CapitalSource, Inc. (NYSE:CSE) headfirst. Fisher Asset Management, managed by Ken Fisher, initiated the most outsized position in CapitalSource, Inc. (NYSE:CSE). Fisher Asset Management had 63.6 million invested in the company at the end of the quarter. Amy Minella's Cardinal Capital also initiated a $51.5 million position during the quarter. The other funds with new positions in the stock are Jim Simons's Renaissance Technologies, Ken Griffin's Citadel Investment Group, and Gregg J. Powers's Private Capital Management.
Bullish insider trading is best served when the company in question has seen transactions within the past half-year. Over the last six-month time period, CapitalSource, Inc. (NYSE:CSE) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to CapitalSource, Inc. (NYSE:CSE). These stocks are PHH Corporation (NYSE:PHH), Credit Acceptance Corp. (NASDAQ:CACC), Cash America International, Inc. (NYSE:CSH), Nelnet, Inc. (NYSE:NNI), and First Cash Financial Services, Inc. (NASDAQ:FCFS). All of these stocks are in the credit services industry and their market caps match CSE's market cap.