To the average investor, there are dozens of methods investors can use to track publicly traded companies. Two of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can beat the market by a solid margin (see just how much).
Just as crucial, positive insider trading sentiment is a second way to analyze the world of equities. Just as you'd expect, there are plenty of reasons for a corporate insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this strategy if investors know what to do (learn more here).
What's more, it's important to examine the newest info surrounding Capital Senior Living Corporation (NYSE:CSU).
In preparation for the third quarter, a total of 17 of the hedge funds we track held long positions in this stock, a change of -11% from the first quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their stakes considerably.
When using filings from the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Capital Senior Living Corporation (NYSE:CSU). Renaissance Technologies has a $29.2 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Joseph Edelman of Perceptive Advisors, with a $21.3 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Phill Gross and Robert Atchinson's Adage Capital Management, Israel Englander's Millennium Management and Jeremy Green's Redmile Group.
Since Capital Senior Living Corporation (NYSE:CSU) has witnessed a fall in interest from the top-tier hedge fund industry, it's safe to say that there was a specific group of money managers who sold off their positions entirely heading into Q2. Interestingly, Richard S. Meisenberg's ACK Asset Management sold off the biggest position of all the hedgies we key on, worth about $10.2 million in stock, and James Dondero of Highland Capital Management was right behind this move, as the fund cut about $1.2 million worth. These transactions are interesting, as total hedge fund interest was cut by 2 funds heading into Q2.
Bullish insider trading is particularly usable when the company we're looking at has seen transactions within the past half-year. Over the last half-year time period, Capital Senior Living Corporation (NYSE:CSU) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to Capital Senior Living Corporation (NYSE:CSU). These stocks are Five Star Quality Care, Inc. (NYSE:FVE), Emeritus Corporation (NYSE:ESC), Kindred Healthcare, Inc. (NYSE:KND), National HealthCare Corporation (NYSEAMEX:NHC), and The Ensign Group, Inc. (NASDAQ:ENSG). This group of stocks belong to the long-term care facilities industry and their market caps are similar to CSU's market cap.