To the average investor, there are dozens of indicators shareholders can use to monitor the equity markets. Some of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outclass their index-focused peers by a solid amount (see just how much).
Just as useful, optimistic insider trading activity is another way to analyze the marketplace. Obviously, there are many motivations for an insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this tactic if you know what to do (learn more here).
What’s more, let’s analyze the recent info surrounding IPC The Hospitalist Company Inc (NASDAQ:IPCM).
How are hedge funds trading IPC The Hospitalist Company Inc (NASDAQ:IPCM)?
At the end of the second quarter, a total of 7 of the hedge funds we track were long in this stock, a change of -13% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.
According to our 13F database, Bill Miller’s Legg Mason Capital Management had the biggest position in IPC The Hospitalist Company Inc (NASDAQ:IPCM), worth close to $10.4 million, comprising 0.2% of its total 13F portfolio. On Legg Mason Capital Management’s heels is Royce & Associates, managed by Chuck Royce, which held a $5.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Israel Englander’s Millennium Management, Millennium Management Subsidiary’s Green Arrow Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.
As IPC The Hospitalist Company Inc (NASDAQ:IPCM) has witnessed a fall in interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of funds that decided to sell off their full holdings at the end of the second quarter. It’s worth mentioning that Mark Broach’s Manatuck Hill Partners sold off the largest stake of all the hedgies we monitor, valued at an estimated $6.2 million in stock. SAC Subsidiary’s fund, CR Intrinsic Investors, also dumped its stock, about $2.2 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 1 funds at the end of the second quarter.
What do corporate executives and insiders think about IPC The Hospitalist Company Inc (NASDAQ:IPCM)?
Insider buying made by high-level executives is most useful when the company in question has experienced transactions within the past six months. Over the last 180-day time period, IPC The Hospitalist Company Inc (NASDAQ:IPCM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to IPC The Hospitalist Company Inc (NASDAQ:IPCM). These stocks are The Providence Service Corporation (NASDAQ:PRSC), U.S. Physical Therapy, Inc. (NYSE:USPH), Acadia Healthcare Company Inc (NASDAQ:ACHC), Healthways, Inc. (NASDAQ:HWAY), and Hanger Inc (NYSE:HGR). This group of stocks are the members of the specialized health services industry and their market caps match IPCM’s market cap.