This Metric Says You Are Smart to Sell Cascade Corporation (CASC)

Page 1 of 2

Is Cascade Corporation (NYSE:CASC) ready to rally soon? Investors who are in the know are taking a bearish view. The number of bullish hedge fund positions decreased by 5 lately.

Cascade Corporation (NYSE:CASC)If you’d ask most market participants, hedge funds are perceived as worthless, outdated investment tools of yesteryear. While there are greater than 8000 funds in operation at the moment, we choose to focus on the top tier of this club, about 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total asset base, and by tracking their top investments, we have identified a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 topped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Just as integral, positive insider trading activity is a second way to parse down the world of equities. There are many stimuli for an executive to sell shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).

Keeping this in mind, let’s take a gander at the key action regarding Cascade Corporation (NYSE:CASC).

How have hedgies been trading Cascade Corporation (NYSE:CASC)?

At the end of the first quarter, a total of 8 of the hedge funds we track held long positions in this stock, a change of -38% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings meaningfully.

According to our comprehensive database, John Paulson’s Paulson & Co had the largest position in Cascade Corporation (NYSE:CASC), worth close to $58.5 million, accounting for 0.3% of its total 13F portfolio. The second largest stake is held by Cliff Asness of AQR Capital Management, with a $47.7 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Jean-Marie Eveillard’s First Eagle Investment Management, Matthew Tewksbury’s Stevens Capital Management and Jim Simons’s Renaissance Technologies.

Because Cascade Corporation (NYSE:CASC) has faced a declination in interest from the entirety of the hedge funds we track, logic holds that there were a few fund managers that elected to cut their full holdings last quarter. At the top of the heap, Robert Emil Zoellner’s Alpine Associates said goodbye to the largest investment of all the hedgies we watch, totaling an estimated $30.8 million in stock.. Chuck Royce’s fund, Royce & Associates, also dropped its stock, about $6.3 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds last quarter.

What have insiders been doing with Cascade Corporation (NYSE:CASC)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the latest six-month time frame, Cascade Corporation (NYSE:CASC) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Cascade Corporation (NYSE:CASC). These stocks are NACCO Industries, Inc. (NYSE:NC), Columbus McKinnon Corp. (NASDAQ:CMCO), Alamo Group, Inc. (NYSE:ALG), Lindsay Corporation (NYSE:LNN), and Astec Industries, Inc. (NASDAQ:ASTE). All of these stocks are in the farm & construction machinery industry and their market caps match CASC’s market cap.

Page 1 of 2
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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!