What’s a smart Credit Acceptance Corp. (NASDAQ:CACC) investor to do?
If you were to ask many traders, hedge funds are viewed as bloated, outdated financial vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open today, Insider Monkey looks at the crème de la crème of this club, around 525 funds. Analysts calculate that this group controls most of the hedge fund industry’s total assets, and by watching their highest performing equity investments, we’ve identified a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as key, bullish insider trading activity is another way to look at the marketplace. There are lots of reasons for a bullish insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this method if investors understand where to look (learn more here).
What’s more, it’s important to discuss the latest info surrounding Credit Acceptance Corp. (NASDAQ:CACC).
What have hedge funds been doing with Credit Acceptance Corp. (NASDAQ:CACC)?
In preparation for the third quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of 143% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially.
When using filings from the hedgies we track, William von Mueffling’s Cantillon Capital Management had the most valuable position in Credit Acceptance Corp. (NASDAQ:CACC), worth close to $48.8 million, accounting for 1.5% of its total 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $36 million position; 0.1% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Edward Goodnow’s Goodnow Investment Group, Quincy Lee’s Ancient Art (Teton Capital) and Israel Englander’s Millennium Management.
As one would understandably expect, certain money managers were breaking ground themselves. Cantillon Capital Management, managed by William von Mueffling, assembled the biggest position in Credit Acceptance Corp. (NASDAQ:CACC). Cantillon Capital Management had 48.8 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $36 million position during the quarter. The following funds were also among the new CACC investors: Edward Goodnow’s Goodnow Investment Group, Quincy Lee’s Ancient Art (Teton Capital), and Israel Englander’s Millennium Management.
Insider trading activity in Credit Acceptance Corp. (NASDAQ:CACC)
Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time period, Credit Acceptance Corp. (NASDAQ:CACC) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Credit Acceptance Corp. (NASDAQ:CACC). These stocks are PHH Corporation (NYSE:PHH), Cash America International, Inc. (NYSE:CSH), Nelnet, Inc. (NYSE:NNI), First Cash Financial Services, Inc. (NASDAQ:FCFS), and CapitalSource, Inc. (NYSE:CSE). This group of stocks are the members of the credit services industry and their market caps are closest to CACC’s market cap.