Capital Senior Living Corporation (NYSE:CSU) was in 12 hedge funds’ portfolio at the end of December. CSU investors should pay attention to a decrease in support from the world’s most elite money managers lately. There were 12 hedge funds in our database with CSU holdings at the end of the previous quarter.
To the average investor, there are plenty of indicators market participants can use to track publicly traded companies. A couple of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can trounce their index-focused peers by a superb margin (see just how much).
Just as key, bullish insider trading activity is a second way to parse down the financial markets. Just as you’d expect, there are a number of motivations for an upper level exec to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this tactic if piggybackers know where to look (learn more here).
Consequently, we’re going to take a gander at the latest action encompassing Capital Senior Living Corporation (NYSE:CSU).
What does the smart money think about Capital Senior Living Corporation (NYSE:CSU)?
At the end of the fourth quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.
When looking at the hedgies we track, Perceptive Advisors, managed by Joseph Edelman, holds the largest position in Capital Senior Living Corporation (NYSE:CSU). Perceptive Advisors has a $23 million position in the stock, comprising 4% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $11 million position; 0% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include “Richard S. Meisenberg’s ACK Asset Management, Mark Broach’s Manatuck Hill Partners and Ken Griffin’s Citadel Investment Group.
Since Capital Senior Living Corporation (NYSE:CSU) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of fund managers that slashed their positions entirely heading into 2013. Intriguingly, Richard Schimel’s Diamondback Capital dropped the largest stake of the 450+ funds we watch, worth close to $9 million in stock. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Capital Senior Living Corporation (NYSE:CSU)?
Insider buying is at its handiest when the company in question has seen transactions within the past six months. Over the latest half-year time period, Capital Senior Living Corporation (NYSE:CSU) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
With the returns shown by our tactics, everyday investors must always watch hedge fund and insider trading activity, and Capital Senior Living Corporation (NYSE:CSU) is no exception.
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