Universal American Corporation (NYSE:UAM) was in 16 hedge funds’ portfolio at the end of December. UAM has seen a decrease in enthusiasm from smart money of late. There were 17 hedge funds in our database with UAM holdings at the end of the previous quarter.
If you’d ask most stock holders, hedge funds are assumed to be slow, old investment tools of years past. While there are more than 8000 funds trading today, we hone in on the elite of this club, about 450 funds. It is estimated that this group controls the lion’s share of the smart money’s total asset base, and by watching their top picks, we have identified a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Equally as important, optimistic insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are lots of stimuli for an upper level exec to sell shares of his or her company, but only one, very obvious reason why they would buy. Various empirical studies have demonstrated the useful potential of this strategy if “monkeys” understand where to look (learn more here).
Consequently, let’s take a glance at the key action regarding Universal American Corporation (NYSE:UAM).
What have hedge funds been doing with Universal American Corporation (NYSE:UAM)?
At the end of the fourth quarter, a total of 16 of the hedge funds we track were bullish in this stock, a change of -6% from the third quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their stakes substantially.
When looking at the hedgies we track, Perry Capital, managed by Richard Perry, holds the biggest position in Universal American Corporation (NYSE:UAM). Perry Capital has a $66 million position in the stock, comprising 2.4% of its 13F portfolio. Sitting at the No. 2 spot is James E. Flynn of Deerfield Management, with a $17 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Peter Adam Hochfelder’s Brahman Capital, Ken Griffin’s Citadel Investment Group and Christopher MedlockáJames’s Partner Fund Management.
Because Universal American Corporation (NYSE:UAM) has witnessed a declination in interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers that slashed their entire stakes at the end of the year. It’s worth mentioning that John Kleinheinz’s Kleinheinz Capital Partners said goodbye to the biggest investment of the 450+ funds we key on, comprising close to $1 million in stock.. Mike Vranos’s fund, Ellington, also sold off its stock, about $0 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 1 funds at the end of the year.
What do corporate executives and insiders think about Universal American Corporation (NYSE:UAM)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Universal American Corporation (NYSE:UAM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the results shown by the aforementioned tactics, retail investors must always watch hedge fund and insider trading activity, and Universal American Corporation (NYSE:UAM) is no exception.
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