Hedge Funds Aren’t Crazy About American Capital Ltd. (NASDAQ:ACAS) Anymore

American Capital Ltd. (NASDAQ:ACAS) has seen a decrease in activity from the world’s largest hedge funds lately.

To most market participants, hedge funds are viewed as worthless, outdated investment vehicles of years past. While there are more than 8000 funds in operation at present, we hone in on the masters of this group, around 450 funds. It is estimated that this group controls the lion’s share of the hedge fund industry’s total asset base, and by monitoring their best picks, we have uncovered a few investment strategies that have historically beaten Mr. Market. 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 began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

American Capital Ltd. (NASDAQ:ACAS)Just as key, optimistic insider trading sentiment is a second way to parse down the stock market universe. Obviously, there are a variety of motivations for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Various academic studies have demonstrated the market-beating potential of this tactic if “monkeys” understand where to look (learn more here).

Now, we’re going to take a peek at the latest action encompassing American Capital Ltd. (NASDAQ:ACAS).

What does the smart money think about American Capital Ltd. (NASDAQ:ACAS)?

Heading into 2013, a total of 21 of the hedge funds we track were bullish in this stock, a change of -5% from the third quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably.

According to our comprehensive database, Luxor Capital Group, managed by Christian Leone, holds the largest position in American Capital Ltd. (NASDAQ:ACAS). Luxor Capital Group has a $145 million position in the stock, comprising 5.1% of its 13F portfolio. Coming in second is Brian Taylor of Pine River Capital Management, with a $91 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, John Paulson’s Paulson & Co and Paul Singer’s Elliott Management.

Because American Capital Ltd. (NASDAQ:ACAS) has faced a declination in interest from hedge fund managers, we can see that there was a specific group of fund managers that slashed their entire stakes in Q4. It’s worth mentioning that James H. Litinsk’s JHL Capital Group cut the biggest investment of all the hedgies we monitor, totaling about $27 million in stock.. Douglas Hirsch’s fund, Seneca Capital, also dumped its stock, about $6 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 1 funds in Q4.

How have insiders been trading American Capital Ltd. (NASDAQ:ACAS)?

Insider trading activity, especially when it’s bullish, is most useful when the company in focus has experienced transactions within the past half-year. Over the last 180-day time frame, American Capital Ltd. (NASDAQ:ACAS) has experienced zero unique insiders buying, and 9 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and American Capital Ltd. (NASDAQ:ACAS) applies perfectly to this mantra.

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

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

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

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!