Should You Avoid Campus Crest Communities Inc (CCG)?
Now, according to many traders, hedge funds are perceived as useless, old investment tools of an era lost to time. Although there are In excess of 8,000 hedge funds with their doors open today, Insider Monkey aim at the aristocrats of this club, close to 525 funds. It is widely held that this group has its hands on the lion's share of all hedge funds' total assets, and by watching their highest quality picks, we've found a number of investment strategies that have historically beaten the S&P 500. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 outperformed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as crucial, positive insider trading activity is a second way to look at the marketplace. There are a variety of motivations for a bullish insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if piggybackers know what to do (learn more here).
What's more, let's analyze the newest info for Campus Crest Communities Inc (NYSE:CCG).
How are hedge funds trading Campus Crest Communities Inc (NYSE:CCG)?
At Q2's end, a total of 9 of the hedge funds we track held long positions in this stock, a change of -36% from one quarter earlier. With hedge funds' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully.
When using filings from the hedgies we track, Forward Management, managed by J. Alan Reid, Jr., holds the largest position in Campus Crest Communities Inc (NYSE:CCG). Forward Management has a $22.7 million position in the stock, comprising 1.9% of its 13F portfolio. On Forward Management's heels is Renaissance Technologies, managed by Jim Simons, which held a $5.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Brian Taylor's Pine River Capital Management, Cliff Asness's AQR Capital Management and Chuck Royce's Royce & Associates.
Since Campus Crest Communities Inc (NYSE:CCG) has experienced declining interest from the top-tier hedge fund industry, it's safe to say that there lies a certain "tier" of hedgies that slashed their full holdings at the end of the second quarter. Intriguingly, Dmitry Balyasny's Balyasny Asset Management cut the largest stake of the "upper crust" of funds we watch, comprising about $3.1 million in stock. Richard Driehaus's fund, Driehaus Capital, also dumped its stock, about $2.3 million worth. These transactions are important to note, as total hedge fund interest dropped by 5 funds at the end of the second quarter.
How have insiders been trading Campus Crest Communities Inc (NYSE:CCG)?
Insider buying made by high-level executives is best served when the company we're looking at has experienced transactions within the past six months. Over the latest 180-day time period, Campus Crest Communities Inc (NYSE:CCG) has seen zero unique insiders purchasing, 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 Campus Crest Communities Inc (NYSE:CCG). These stocks are Agree Realty Corporation (NYSE:ADC), Alto Palermo S.A. (ADR) (NASDAQ:APSA), Tejon Ranch Company (NYSE:TRC), Homex Development Corp. (ADR) (NYSE:HXM), and E-House (China) Holdings Limited (ADR) (NYSE:EJ). This group of stocks belong to the property management industry and their market caps match CCG's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Agree Realty Corporation (NYSE:ADC)
Alto Palermo S.A. (ADR) (NASDAQ:APSA)
Tejon Ranch Company (NYSE:TRC)
Homex Development Corp. (ADR) (NYSE:HXM)
E-House (China) Holdings Limited (ADR) (NYSE:EJ)
Using the results demonstrated by our studies, regular investors should always keep one eye on hedge fund and insider trading activity, and Campus Crest Communities Inc (NYSE:CCG) shareholders fit into this picture quite nicely.
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