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To most market participants, hedge funds are viewed as worthless, outdated investment vehicles of years past.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 Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!