If you were to ask many investors, hedge funds are viewed as useless, outdated investment vehicles of a forgotten age. Although there are over 8,000 hedge funds in operation in present day, this site aim at the aristocrats of this club, about 525 funds. Analysts calculate that this group controls the lion’s share of all hedge funds’ total capital, and by paying attention to their highest quality investments, we’ve formulated a few investment strategies that have historically outperformed 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 33 percentage points in 11 months (find a sample of our picks).
Equally as necessary, positive insider trading sentiment is a second way to look at the marketplace. Just as you’d expect, there are a variety of incentives for an insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this tactic if you understand what to do (learn more here).
Keeping this in mind, we’re going to discuss the latest info for Cross Country Healthcare, Inc. (NASDAQ:CCRN).
How have hedgies been trading Cross Country Healthcare, Inc. (NASDAQ:CCRN)?
In preparation for the third quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 18% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially.
Out of the hedge funds we follow, Deerfield Management, managed by James E. Flynn, holds the most valuable position in Cross Country Healthcare, Inc. (NASDAQ:CCRN). Deerfield Management has a $8.2 million position in the stock, comprising 0.4% of its 13F portfolio. On Deerfield Management’s heels is Camber Capital Management, managed by Stephen DuBois, which held a $7.9 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Martin Whitman’s Third Avenue Management, Chuck Royce’s Royce & Associates and Jason F. Harris’s Kendall Square Capital.
As industrywide interest increased, specific money managers were leading the bulls’ herd. Deerfield Management, managed by James E. Flynn, assembled the most valuable position in Cross Country Healthcare, Inc. (NASDAQ:CCRN). Deerfield Management had 8.2 million invested in the company at the end of the quarter. Stephen DuBois’s Camber Capital Management also initiated a $7.9 million position during the quarter. The following funds were also among the new CCRN investors: Martin Whitman’s Third Avenue Management, Chuck Royce’s Royce & Associates, and Jason F. Harris’s Kendall Square Capital.
Insider trading activity in Cross Country Healthcare, Inc. (NASDAQ:CCRN)
Bullish insider trading is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Cross Country Healthcare, Inc. (NASDAQ:CCRN) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Cross Country Healthcare, Inc. (NASDAQ:CCRN). These stocks are Barrett Business Services, Inc. (NASDAQ:BBSI), RCM Technologies, Inc. (NASDAQ:RCMT), CDI Corp. (NYSE:CDI), Heidrick & Struggles International, Inc. (NASDAQ:HSII), and Hudson Global Inc (NASDAQ:HSON). This group of stocks are the members of the staffing & outsourcing services industry and their market caps are closest to CCRN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Barrett Business Services, Inc. (NASDAQ:BBSI) | 10 | 0 | 0 |
| RCM Technologies, Inc. (NASDAQ:RCMT) | 3 | 0 | 0 |
| CDI Corp. (NYSE:CDI) | 5 | 0 | 0 |
| Heidrick & Struggles International, Inc. (NASDAQ:HSII) | 9 | 0 | 0 |
| Hudson Global Inc (NASDAQ:HSON) | 6 | 0 | 0 |
Using the results explained by Insider Monkey’s studies, average investors must always track hedge fund and insider trading sentiment, and Cross Country Healthcare, Inc. (NASDAQ:CCRN) is no exception.
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