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This Metric Says You Are Smart to Buy AMN Healthcare Services, Inc. (NYSE:AHS) – Trueblue Inc (NYSE:TBI), Korn/Ferry International (NYSE:KFY)

AMN Healthcare Services, Inc. (NYSE:AHS) investors should pay attention to an increase in hedge fund interest of late.

At the moment, there are a multitude of indicators market participants can use to monitor their holdings. A duo of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can beat their index-focused peers by a solid amount (see just how much).

Just as beneficial, optimistic insider trading sentiment is another way to parse down the world of equities. As the old adage goes: there are a variety of incentives for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this tactic if shareholders understand what to do (learn more here).

Now, we’re going to take a glance at the recent action surrounding AMN Healthcare Services, Inc. (NYSE:AHS).

What does the smart money think about AMN Healthcare Services, Inc. (NYSE:AHS)?

Heading into 2013, a total of 15 of the hedge funds we track held long positions in this stock, a change of 67% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings substantially.

Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in AMN Healthcare Services, Inc. (NYSE:AHS). Renaissance Technologies has a $5 million position in the stock, comprising 0% of its 13F portfolio. Coming in second is McKinley Capital Management, managed by Robert B. Gillam, which held a $3 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, James Pallotta’s Raptor Capital Management and Ken Griffin’s Citadel Investment Group.

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. McKinley Capital Management, managed by Robert B. Gillam, initiated the largest position in AMN Healthcare Services, Inc. (NYSE:AHS). McKinley Capital Management had 3 million invested in the company at the end of the quarter. James Pallotta’s Raptor Capital Management also initiated a $1 million position during the quarter. The other funds with new positions in the stock are Richard Driehaus’s Driehaus Capital, Cliff Asness’s AQR Capital Management, and Neil Chriss’s Hutchin Hill Capital.

Insider trading activity in AMN Healthcare Services, Inc. (NYSE:AHS)

Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the latest six-month time period, AMN Healthcare Services, Inc. (NYSE:AHS) has experienced 1 unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to AMN Healthcare Services, Inc. (NYSE:AHS). These stocks are DICE HOLDINGS, INC. (NYSE:DHX), Korn/Ferry International (NYSE:KFY), Trueblue Inc (NYSE:TBI), Compass Diversified Holdings (NYSE:CODI), and Kelly Services, Inc. (NASDAQ:KELYA). This group of stocks are in the staffing & outsourcing services industry and their market caps resemble AHS’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
DICE HOLDINGS, INC. (NYSE:DHX) 8 0 2
Korn/Ferry International (NYSE:KFY) 12 0 0
Trueblue Inc (NYSE:TBI) 7 0 10
Compass Diversified Holdings (NYSE:CODI) 5 7 0
Kelly Services, Inc. (NASDAQ:KELYA) 10 0 1

With the results exhibited by our strategies, retail investors should always watch hedge fund and insider trading sentiment, and AMN Healthcare Services, Inc. (NYSE:AHS) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

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