Hedge Funds Are Buying Emeritus Corporation (NYSE:ESC) – Brookdale Senior Living, Inc. (NYSE:BKD), Capital Senior Living Corporation (NYSE:CSU)

Emeritus Corporation (NYSE:ESC) has experienced an increase in enthusiasm from smart money of late.

At the moment, there are many metrics investors can use to track Mr. Market. Two of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat their index-focused peers by a healthy amount (see just how much).

Just as key, optimistic insider trading activity is a second way to parse down the investments you’re interested in. Just as you’d expect, there are plenty of reasons for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this strategy if “monkeys” understand where to look (learn more here).

Keeping this in mind, we’re going to take a look at the key action surrounding Emeritus Corporation (NYSE:ESC).

How have hedgies been trading Emeritus Corporation (NYSE:ESC)?

At year’s end, a total of 15 of the hedge funds we track held long positions in this stock, a change of 25% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings substantially.

When looking at the hedgies we track, Richard S. Meisenberg’s ACK Asset Management had the most valuable position in Emeritus Corporation (NYSE:ESC), worth close to $15 million, comprising 7.3% of its total 13F portfolio. Sitting at the No. 2 spot is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $9 million position; the fund has 0% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.

As aggregate interest increased, key hedge funds have been driving this bullishness. Wexford Capital, managed by Charles Davidson, created the most valuable position in Emeritus Corporation (NYSE:ESC). Wexford Capital had 2 million invested in the company at the end of the quarter. Israel Englander’s Catapult Capital Management also made a $1 million investment in the stock during the quarter. The other funds with brand new ESC positions are Andy Redleaf’s Whitebox Advisors, John Overdeck and David Siegel’s Two Sigma Advisors, and Anand Parekh’s Alyeska Investment Group.

What have insiders been doing with Emeritus Corporation (NYSE:ESC)?

Bullish insider trading is at its handiest when the company in question has experienced transactions within the past half-year. Over the last half-year time frame, Emeritus Corporation (NYSE:ESC) has experienced zero unique insiders buying, and 13 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Emeritus Corporation (NYSE:ESC). These stocks are Brookdale Senior Living, Inc. (NYSE:BKD), Kindred Healthcare, Inc. (NYSE:KND), National HealthCare Corporation (NYSEAMEX:NHC), The Ensign Group, Inc. (NASDAQ:ENSG), and Capital Senior Living Corporation (NYSE:CSU). All of these stocks are in the long-term care facilities industry and their market caps resemble ESC’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Brookdale Senior Living, Inc. (NYSE:BKD) 34 0 11
Kindred Healthcare, Inc. (NYSE:KND) 11 0 8
National HealthCare Corporation (NYSEAMEX:NHC) 5 0 4
The Ensign Group, Inc. (NASDAQ:ENSG) 5 0 5
Capital Senior Living Corporation (NYSE:CSU) 12 0 9

With the returns exhibited by Insider Monkey’s time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading activity, and Emeritus Corporation (NYSE:ESC) shareholders fit into this picture quite nicely.

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

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% 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

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

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways 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

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies 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!