What’s a smart Heidrick & Struggles International, Inc. (NASDAQ:HSII) investor to do?
To many traders, hedge funds are assumed to be delayed, outdated investment vehicles of a forgotten age. Although there are more than 8,000 hedge funds trading in present day, this site focuses on the aristocrats of this club, around 525 funds. Analysts calculate that this group oversees the majority of the hedge fund industry’s total assets, and by watching their highest quality investments, we’ve uncovered a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as necessary, bullish insider trading activity is a second way to analyze the investments you’re interested in. Just as you’d expect, there are a number of reasons for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Many empirical studies have demonstrated the valuable potential of this tactic if “monkeys” know where to look (learn more here).
What’s more, we’re going to examine the newest info surrounding Heidrick & Struggles International, Inc. (NASDAQ:HSII).
How are hedge funds trading Heidrick & Struggles International, Inc. (NASDAQ:HSII)?
In preparation for the third quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 13% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings meaningfully.
According to our 13F database, Chuck Royce’s Royce & Associates had the biggest position in Heidrick & Struggles International, Inc. (NASDAQ:HSII), worth close to $10.5 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by Matthew Lindenbaum of Basswood Capital, with a $4.3 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Sander Gerber’s Hudson Bay Capital Management, Jim Simons’s Renaissance Technologies and Joel Greenblatt’s Gotham Asset Management.
Consequently, particular hedge funds have been driving this bullishness. Royce & Associates, managed by Chuck Royce, created the most outsized position in Heidrick & Struggles International, Inc. (NASDAQ:HSII). Royce & Associates had 10.5 million invested in the company at the end of the quarter. Matthew Lindenbaum’s Basswood Capital also made a $4.3 million investment in the stock during the quarter. The following funds were also among the new HSII investors: Sander Gerber’s Hudson Bay Capital Management, Jim Simons’s Renaissance Technologies, and Joel Greenblatt’s Gotham Asset Management.
How have insiders been trading Heidrick & Struggles International, Inc. (NASDAQ:HSII)?
Legal insider trading, particularly when it’s bullish, is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time frame, Heidrick & Struggles International, Inc. (NASDAQ:HSII) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Heidrick & Struggles International, Inc. (NASDAQ:HSII). These stocks are Kforce Inc. (NASDAQ:KFRC), Hudson Global Inc (NASDAQ:HSON), Cross Country Healthcare, Inc. (NASDAQ:CCRN), Barrett Business Services, Inc. (NASDAQ:BBSI), and CDI Corp. (NYSE:CDI). This group of stocks belong to the staffing & outsourcing services industry and their market caps are similar to HSII’s market cap.