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Hedge Funds Are Crazy About Catamaran Corp (USA) (CTRX)

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Now, according to many market players, hedge funds are viewed as overrated, outdated investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds trading currently, this site aim at the crème de la crème of this club, close to 525 funds. Analysts calculate that this group oversees the majority of all hedge funds’ total capital, and by paying attention to their best stock picks, we’ve revealed a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outpaced 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 33 percentage points in 11 months (explore the details and some picks here).

Just as crucial, bullish insider trading activity is a second way to look at the marketplace. Just as you’d expect, there are lots of reasons for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this tactic if shareholders understand where to look (learn more here).

What’s more, it’s important to analyze the recent info for Catamaran Corp (USA) (NASDAQ:CTRX).

What does the smart money think about Catamaran Corp (USA) (NASDAQ:CTRX)?

At the end of the second quarter, a total of 35 of the hedge funds we track were long in this stock, a change of 75% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly.

Catamaran Corp (USA) (NASDAQ:CTRX)Out of the hedge funds we follow, Tiger Consumer Management, managed by Patrick McCormack, holds the most valuable position in Catamaran Corp (USA) (NASDAQ:CTRX). Tiger Consumer Management has a $113.9 million position in the stock, comprising 4% of its 13F portfolio. Sitting at the No. 2 spot is Phill Gross and Robert Atchinson of Adage Capital Management, with a $27.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Israel Englander’s Millennium Management, Robert Emil Zoellner’s Alpine Associates and James E. Flynn’s Deerfield Management.

With a general bullishness amongst the titans, particular hedge funds were leading the bulls’ herd. Tiger Consumer Management, managed by Patrick McCormack, initiated the biggest position in Catamaran Corp (USA) (NASDAQ:CTRX). Tiger Consumer Management had 113.9 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $27.3 million investment in the stock during the quarter. The other funds with brand new CTRX positions are Israel Englander’s Millennium Management, Robert Emil Zoellner’s Alpine Associates, and James E. Flynn’s Deerfield Management.

Insider trading activity in Catamaran Corp (USA) (NASDAQ:CTRX)

Legal insider trading, particularly when it’s bullish, is best served when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, Catamaran Corp (USA) (NASDAQ:CTRX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Catamaran Corp (USA) (NASDAQ:CTRX). These stocks are BMC Software, Inc. (NASDAQ:BMC), F5 Networks, Inc. (NASDAQ:FFIV), Red Hat, Inc. (NYSE:RHT), Workday Inc (NYSE:WDAY), and CA, Inc. (NASDAQ:CA). This group of stocks belong to the application software industry and their market caps resemble CTRX’s market cap.

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