Hedge Funds Are Dumping CBIZ, Inc. (CBZ)
Should CBIZ, Inc. (NYSE:CBZ) investors track the following data?
If you were to ask many market players, hedge funds are assumed to be overrated, old investment tools of a forgotten age. Although there are more than 8,000 hedge funds with their doors open in present day, Insider Monkey focuses on the crème de la crème of this group, about 525 funds. It is widely held that this group has its hands on the majority of the hedge fund industry's total assets, and by watching their highest performing stock picks, we've spotted a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat 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 outperformed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as necessary, optimistic insider trading activity is a second way to look at the stock market universe. As the old adage goes: there are a number of motivations for an executive to get rid of shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if piggybackers know what to do (learn more here).
Keeping this in mind, we're going to discuss the newest info about CBIZ, Inc. (NYSE:CBZ).
What does the smart money think about CBIZ, Inc. (NYSE:CBZ)?
At the end of the second quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of -15% from one quarter earlier. With hedgies' capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings significantly.
Out of the hedge funds we follow, Claus Moller's P2 Capital Partners had the most valuable position in CBIZ, Inc. (NYSE:CBZ), worth close to $16.2 million, accounting for 2.6% of its total 13F portfolio. On P2 Capital Partners's heels is Amy Minella of Cardinal Capital, with a $14.8 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include David Dreman's Dreman Value Management, Robert B. Gillam's McKinley Capital Management and Chuck Royce's Royce & Associates.
Since CBIZ, Inc. (NYSE:CBZ) has faced declining interest from the top-tier hedge fund industry, we can see that there is a sect of fund managers who sold off their entire stakes heading into Q2. Interestingly, Ken Gray and Steve Walsh's Bryn Mawr Capital sold off the biggest investment of the "upper crust" of funds we monitor, comprising about $0.3 million in stock, and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund dropped about $0.1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds heading into Q2.
How are insiders trading CBIZ, Inc. (NYSE:CBZ)?
Insider buying made by high-level executives is best served when the primary stock in question has experienced transactions within the past six months. Over the latest six-month time frame, CBIZ, Inc. (NYSE:CBZ) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to CBIZ, Inc. (NYSE:CBZ). These stocks are Consolidated Graphics, Inc. (NYSE:CGX), Furiex Pharmaceuticals Inc (NASDAQ:FURX), Carbonite Inc (NASDAQ:CARB), Net 1 UEPS Technologies Inc (NASDAQ:UEPS), and Safeguard Scientifics, Inc (NYSE:SFE). All of these stocks are in the business services industry and their market caps resemble CBZ's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Consolidated Graphics, Inc. (NYSE:CGX)
Furiex Pharmaceuticals Inc (NASDAQ:FURX)
Carbonite Inc (NASDAQ:CARB)
Net 1 UEPS Technologies Inc (NASDAQ:UEPS)
Safeguard Scientifics, Inc (NYSE:SFE)
Using the results shown by the previously mentioned research, average investors must always watch hedge fund and insider trading activity, and CBIZ, Inc. (NYSE:CBZ) is an important part of this process.