On Assignment, Inc. (ASGN): Here’s What You Should Watch

On Assignment, Inc. (NYSE:ASGN)On Assignment, Inc. (NYSE:ASGN) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. ASGN has seen a decrease in activity from the world’s largest hedge funds of late. There were 10 hedge funds in our database with ASGN positions at the end of the previous quarter.

In the eyes of most stock holders, hedge funds are perceived as unimportant, old financial tools of the past. While there are greater than 8000 funds in operation at present, we hone in on the bigwigs of this club, about 450 funds. Most estimates calculate that this group has its hands on most of the hedge fund industry’s total asset base, and by tracking their best equity investments, we have figured out a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum 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 beaten the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).

Equally as beneficial, positive insider trading activity is a second way to break down the financial markets. There are lots of motivations for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).

With these “truths” under our belt, let’s take a peek at the recent action regarding On Assignment, Inc. (NYSE:ASGN).

What does the smart money think about On Assignment, Inc. (NYSE:ASGN)?

Heading into 2013, a total of 9 of the hedge funds we track were bullish in this stock, a change of -10% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings significantly.

Of the funds we track, Driehaus Capital, managed by Richard Driehaus, holds the largest position in On Assignment, Inc. (NYSE:ASGN). Driehaus Capital has a $11.8 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $10.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers that are bullish include Robert B. Gillam’s McKinley Capital Management, Jim Simons’s Renaissance Technologies and John Murphy’s Alydar Capital.

Because On Assignment, Inc. (NYSE:ASGN) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of fund managers that slashed their entire stakes in Q4. At the top of the heap, Ken Grossman and Glen Schneider’s SG Capital Management dumped the largest stake of all the hedgies we monitor, totaling about $2.5 million in stock., and Anand Parekh of Alyeska Investment Group was right behind this move, as the fund dumped about $0.8 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 1 funds in Q4.

How are insiders trading On Assignment, Inc. (NYSE:ASGN)?

Insider purchases made by high-level executives is particularly usable when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time frame, On Assignment, Inc. (NYSE:ASGN) has experienced 1 unique insiders buying, and 9 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to On Assignment, Inc. (NYSE:ASGN). These stocks are Compass Diversified Holdings (NYSE:CODI), Trueblue Inc (NYSE:TBI), Korn/Ferry International (NYSE:KFY), , and 51job, Inc. (ADR) (NASDAQ:JOBS). This group of stocks belong to the staffing & outsourcing services industry and their market caps resemble ASGN’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Compass Diversified Holdings (NYSE:CODI) 5 7 0
Trueblue Inc (NYSE:TBI) 7 0 10
Korn/Ferry International (NYSE:KFY) 12 0 0
51job, Inc. (ADR) (NASDAQ:JOBS) 6 0 0

With the results demonstrated by our studies, retail investors should always pay attention to hedge fund and insider trading sentiment, and On Assignment, Inc. (NYSE:ASGN) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!