Regional Management Corp (NYSE:RM) was in 8 hedge funds’ portfolio at the end of the first quarter of 2013. RM has seen a decrease in hedge fund interest recently. There were 8 hedge funds in our database with RM positions at the end of the previous quarter.
In the financial world, there are plenty of indicators shareholders can use to track Mr. Market. A pair of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outclass the broader indices by a very impressive amount (see just how much).
Just as important, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are a number of stimuli for an upper level exec to downsize shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the impressive potential of this strategy if you know what to do (learn more here).
Consequently, we’re going to take a peek at the recent action regarding Regional Management Corp (NYSE:RM).
Hedge fund activity in Regional Management Corp (NYSE:RM)
At Q1’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings considerably.
When looking at the hedgies we track, Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management had the most valuable position in Regional Management Corp (NYSE:RM), worth close to $7.6 million, accounting for 1.2% of its total 13F portfolio. On Nantahala Capital Management’s heels is Ardsley Partners, managed by Philip Hempleman, which held a $5.7 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Ken Griffin’s Citadel Investment Group, Andy Redleaf’s Whitebox Advisors and Chuck Royce’s Royce & Associates.
Since Regional Management Corp (NYSE:RM) has experienced bearish sentiment from the smart money, we can see that there exists a select few hedge funds that decided to sell off their positions entirely heading into Q2. It’s worth mentioning that Van Schreiber’s Bennett Lawrence Management dumped the biggest position of the 450+ funds we key on, comprising about $0.6 million in stock. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Regional Management Corp (NYSE:RM)?
Bullish insider trading is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest six-month time frame, Regional Management Corp (NYSE:RM) has experienced 2 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Regional Management Corp (NYSE:RM). These stocks are Nicholas Financial, Inc. (NASDAQ:NICK), Federal Agricultural Mortgage Corp. (NYSE:AGM), Asset Acceptance Capital Corp. (NASDAQ:AACC), Medallion Financial Corp (NASDAQ:TAXI), and Consumer Portfolio Services, Inc. (NASDAQ:CPSS). This group of stocks are in the credit services industry and their market caps are closest to RM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Nicholas Financial, Inc. (NASDAQ:NICK) | 4 | 0 | 0 |
| Federal Agricultural Mortgage Corp. (NYSE:AGM) | 6 | 0 | 12 |
| Asset Acceptance Capital Corp. (NASDAQ:AACC) | 8 | 0 | 6 |
| Medallion Financial Corp (NASDAQ:TAXI) | 7 | 0 | 4 |
| Consumer Portfolio Services, Inc. (NASDAQ:CPSS) | 4 | 0 | 1 |
With the results exhibited by the aforementioned tactics, everyday investors should always monitor hedge fund and insider trading activity, and Regional Management Corp (NYSE:RM) is no exception.
