Is Encore Capital Group, Inc. (NASDAQ:ECPG) a sound stock to buy now? The smart money is becoming hopeful. The number of long hedge fund bets rose by 5 recently.
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With all of this in mind, let’s take a look at the recent action regarding Encore Capital Group, Inc. (NASDAQ:ECPG).
What does the smart money think about Encore Capital Group, Inc. (NASDAQ:ECPG)?
At the end of the first quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of 83% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings substantially.
According to our comprehensive database, John Murphy’s Alydar Capital had the biggest position in Encore Capital Group, Inc. (NASDAQ:ECPG), worth close to $31.1 million, comprising 2% of its total 13F portfolio. The second largest stake is held by D. E. Shaw of D E Shaw, with a $9 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Andy Redleaf’s Whitebox Advisors, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management.
As one would reasonably expect, key money managers have been driving this bullishness. Millennium Management, managed by Israel Englander, assembled the most outsized position in Encore Capital Group, Inc. (NASDAQ:ECPG). Millennium Management had 1.8 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also initiated a $0.6 million position during the quarter. The following funds were also among the new ECPG investors: Matthew Tewksbury’s Stevens Capital Management, Peter Rathjens Bruce Clarke and John Campbell’s Arrowstreet Capital, and Paul Tudor Jones’s Tudor Investment Corp.
How are insiders trading Encore Capital Group, Inc. (NASDAQ:ECPG)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the last six-month time frame, Encore Capital Group, Inc. (NASDAQ:ECPG) has seen 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Encore Capital Group, Inc. (NASDAQ:ECPG). These stocks are Triangle Capital Corporation (NYSE:TCAP), Duff & Phelps Corp (NYSE:DUF), Blackrock Kelso Capital Corp. (NASDAQ:BKCC), Epoch Holding Corp (NASDAQ:EPHC), and Pacific Coast Oil Trust (NYSE:ROYT). This group of stocks are the members of the asset management industry and their market caps are similar to ECPG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Triangle Capital Corporation (NYSE:TCAP) | 4 | 0 | 0 |
| Duff & Phelps Corp (NYSE:DUF) | 17 | 0 | 0 |
| Blackrock Kelso Capital Corp. (NASDAQ:BKCC) | 9 | 0 | 2 |
| Epoch Holding Corp (NASDAQ:EPHC) | 9 | 0 | 1 |
| Pacific Coast Oil Trust (NYSE:ROYT) | 1 | 0 | 0 |
With the results demonstrated by the aforementioned strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Encore Capital Group, Inc. (NASDAQ:ECPG) is an important part of this process.
