ProAssurance Corporation (NYSE:PRA) was in 19 hedge funds' portfolio at the end of March. PRA investors should be aware of a decrease in activity from the world's largest hedge funds in recent months. There were 20 hedge funds in our database with PRA positions at the end of the previous quarter.
In the eyes of most market participants, hedge funds are viewed as underperforming, old financial tools of yesteryear. While there are more than 8000 funds with their doors open at present, we at Insider Monkey look at the elite of this club, around 450 funds. Most estimates calculate that this group oversees most of all hedge funds' total asset base, and by keeping an eye on their best stock picks, we have unsheathed a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Equally as beneficial, optimistic insider trading sentiment is a second way to parse down the world of equities. As the old adage goes: there are a variety of stimuli for a corporate insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this method if you understand what to do (learn more here).
With these "truths" under our belt, we're going to take a peek at the latest action encompassing ProAssurance Corporation (NYSE:PRA).
Heading into Q2, a total of 19 of the hedge funds we track were bullish in this stock, a change of -5% from the previous quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings significantly.
According to our comprehensive database, Chuck Royce's Royce & Associates had the most valuable position in ProAssurance Corporation (NYSE:PRA), worth close to $80.9 million, comprising 0.2% of its total 13F portfolio. On Royce & Associates's heels is Bryn Mawr Capital, managed by Ken Gray and Steve Walsh, which held a $42.1 million position; the fund has 3% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Ken Griffin's Citadel Investment Group, Brian Ashford-Russell and Tim Woolley's Polar Capital and Steven Cohen's SAC Capital Advisors.
Judging by the fact that ProAssurance Corporation (NYSE:PRA) has faced declining sentiment from hedge fund managers, we can see that there exists a select few funds that decided to sell off their full holdings at the end of the first quarter. It's worth mentioning that Paul Tudor Jones's Tudor Investment Corp said goodbye to the biggest stake of all the hedgies we monitor, comprising an estimated $0.5 million in stock.. David Harding's fund, Winton Capital Management, also dropped its stock, about $0.5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 1 funds at the end of the first quarter.
Bullish insider trading is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time frame, ProAssurance Corporation (NYSE:PRA) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let's also examine hedge fund and insider activity in other stocks similar to ProAssurance Corporation (NYSE:PRA). These stocks are Corelogic Inc (NYSE:CLGX), Allied World Assurance Co Holdings, AG. (NYSE:AWH), Aspen Insurance Holdings Limited (NYSE:AHL), First American Financial Corp (NYSE:FAF), and Alterra Capital Holdings Ltd (NASDAQ:ALTE). This group of stocks belong to the property & casualty insurance industry and their market caps are similar to PRA's market cap.