Hedge Funds Are Betting On ITT Educational Services, Inc. (NYSE:ESI)

Is ITT Educational Services, Inc. (NYSE:ESI) the right investment to pursue these days? Prominent investors are in a bullish mood. The number of bullish hedge fund bets moved up by 1 lately.

ITT Educational Services, Inc. (NYSE:ESI)

To most stock holders, hedge funds are perceived as unimportant, old investment vehicles of yesteryear. While there are greater than 8000 funds in operation at the moment, we look at the moguls of this club, about 450 funds. It is widely believed that this group controls the majority of the hedge fund industry’s total asset base, and by tracking their top picks, we have figured out a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outperformed 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 outclassed the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Just as beneficial, bullish insider trading activity is another way to parse down the stock market universe. There are a number of stimuli for an executive to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this tactic if investors understand where to look (learn more here).

Keeping this in mind, it’s important to take a peek at the latest action surrounding ITT Educational Services, Inc. (NYSE:ESI).

What have hedge funds been doing with ITT Educational Services, Inc. (NYSE:ESI)?

In preparation for this year, a total of 18 of the hedge funds we track were bullish in this stock, a change of 6% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly.

Of the funds we track, Select Equity Group, managed by Robert Joseph Caruso, holds the biggest position in ITT Educational Services, Inc. (NYSE:ESI). Select Equity Group has a $66 million position in the stock, comprising 1% of its 13F portfolio. Coming in second is Blum Capital Partners, managed by Richard Blum, which held a $58 million position; 0.3% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Cliff Asness’s AQR Capital Management, and Robert Pitts’s Steadfast Capital Management.

Consequently, key hedge funds were breaking ground themselves. Axial Capital, managed by Eliav Assouline and Marc Andersen, assembled the largest position in ITT Educational Services, Inc. (NYSE:ESI). Axial Capital had 2 million invested in the company at the end of the quarter. Himanshu H. Shah’s Shah Capital Management also initiated a $2 million position during the quarter. The other funds with new positions in the stock are Mike Vranos’s Ellington and Charles Davidson’s Wexford Capital.

What do corporate executives and insiders think about ITT Educational Services, Inc. (NYSE:ESI)?

Bullish insider trading is most useful when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, ITT Educational Services, Inc. (NYSE:ESI) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

With the returns demonstrated by Insider Monkey’s research, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and ITT Educational Services, Inc. (NYSE:ESI) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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

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

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

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!