Is CNinsure Inc. (ADR) (NASDAQ:CISG) an exceptional investment today? The best stock pickers are in a bearish mood. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience
In the financial world, there are plenty of methods investors can use to analyze the equity markets. A pair of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outclass the S&P 500 by a solid margin (see just how much).
Just as key, bullish insider trading sentiment is a second way to parse down the marketplace. Obviously, there are a number of stimuli for a bullish insider to downsize shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the impressive potential of this tactic if “monkeys” understand what to do (learn more here).
With these “truths” under our belt, it’s important to take a peek at the key action encompassing CNinsure Inc. (ADR) (NASDAQ:CISG).
How have hedgies been trading CNinsure Inc. (ADR) (NASDAQ:CISG)?
At year’s end, a total of 5 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Jim Simons’s Renaissance Technologies had the largest position in CNinsure Inc. (ADR) (NASDAQ:CISG), worth close to $2.8 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by D. E. Shaw of D E Shaw, with a $1.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Israel Englander’s Millennium Management, Prem Watsa’s Fairfax Financial Holdings and John Overdeck and David Siegel’s Two Sigma Advisors.
Because CNinsure Inc. (ADR) (NASDAQ:CISG) has witnessed a declination in interest from the aggregate hedge fund industry, we can see that there is a sect of fund managers that slashed their positions entirely heading into 2013. At the top of the heap, Ken Griffin’s Citadel Investment Group sold off the biggest position of all the hedgies we key on, valued at about $0.1 million in stock. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about CNinsure Inc. (ADR) (NASDAQ:CISG)?
Insider purchases made by high-level executives is most useful when the company in question has seen transactions within the past half-year. Over the last 180-day time period, CNinsure Inc. (ADR) (NASDAQ:CISG) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to CNinsure Inc. (ADR) (NASDAQ:CISG). These stocks are Erie Indemnity Company (NASDAQ:ERIE), National Financial Partners Corp. (NYSE:NFP), CorVel Corporation (NASDAQ:CRVL), Crawford & Company (NYSE:CRD-B), and eHealth, Inc. (NASDAQ:EHTH). All of these stocks are in the insurance brokers industry and their market caps match CISG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Erie Indemnity Company (NASDAQ:ERIE) | 9 | 1 | 2 |
| National Financial Partners Corp. (NYSE:NFP) | 15 | 0 | 0 |
| CorVel Corporation (NASDAQ:CRVL) | 5 | 0 | 5 |
| Crawford & Company (NYSE:CRD-B) | 7 | 4 | 0 |
| eHealth, Inc. (NASDAQ:EHTH) | 10 | 0 | 4 |
With the returns exhibited by our studies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and CNinsure Inc. (ADR) (NASDAQ:CISG) is an important part of this process.
