Accretive Health, Inc. (NYSE:AH) investors should pay attention to a decrease in hedge fund sentiment in recent months.
At the moment, there are many methods shareholders can use to track their holdings. A pair of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can outperform their index-focused peers by a solid margin (see just how much).
Equally as key, optimistic insider trading sentiment is another way to break down the marketplace. There are many stimuli for an insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this method if you understand what to do (learn more here).
Keeping this in mind, it’s important to take a look at the recent action encompassing Accretive Health, Inc. (NYSE:AH).
How are hedge funds trading Accretive Health, Inc. (NYSE:AH)?
At the end of the fourth quarter, a total of 16 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings meaningfully.
Of the funds we track, Stephen Mandel’s Lone Pine Capital had the biggest position in Accretive Health, Inc. (NYSE:AH), worth close to $62 million, comprising 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Tremblant Capital, managed by Brett Barakett, which held a $29 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include D. E. Shaw’s D E Shaw, Jacob Gottlieb’s Visium Asset Management and Edward Gilhuly and Scott Stuart’s Sageview Capital.
Because Accretive Health, Inc. (NYSE:AH) has witnessed a declination in interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few hedgies that decided to sell off their entire stakes last quarter. Intriguingly, Xerion sold off the biggest investment of the “upper crust” of funds we watch, valued at about $2 million in call options. Thomas E. Claugus’s fund, GMT Capital, also dumped its stock, about $2 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Accretive Health, Inc. (NYSE:AH)?
Bullish insider trading is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time frame, Accretive Health, Inc. (NYSE:AH) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the results exhibited by the aforementioned tactics, everyday investors must always monitor hedge fund and insider trading activity, and Accretive Health, Inc. (NYSE:AH) shareholders fit into this picture quite nicely.
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