Acadia Healthcare Company Inc (ACHC): Hedge Funds Are Bearish and Insiders Are Bullish, What Should You Do?

Acadia Healthcare Company Inc (NASDAQ:ACHC) was in 14 hedge funds’ portfolio at the end of the first quarter of 2013. ACHC has seen a decrease in hedge fund interest recently. There were 17 hedge funds in our database with ACHC positions at the end of the previous quarter.

At the moment, there are a multitude of metrics shareholders can use to analyze stocks. Some of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outclass the broader indices by a solid margin (see just how much).

Just as important, positive insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are lots of reasons for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this method if investors understand what to do (learn more here).

Keeping this in mind, let’s take a glance at the key action encompassing Acadia Healthcare Company Inc (NASDAQ:ACHC).

Hedge fund activity in Acadia Healthcare Company Inc (NASDAQ:ACHC)

In preparation for this quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of -18% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Driehaus Capital, managed by Richard Driehaus, holds the largest position in Acadia Healthcare Company Inc (NASDAQ:ACHC). Driehaus Capital has a $11.5 million position in the stock, comprising 0.5% of its 13F portfolio. On Driehaus Capital’s heels is Highland Capital Management, managed by James Dondero, which held a $9.8 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Drew Cupps’s Cupps Capital Management, Daniel Arbess’s Xerion and Phill Gross and Robert Atchinson’s Adage Capital Management.

Judging by the fact that Acadia Healthcare Company Inc (NASDAQ:ACHC) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there were a few funds that decided to sell off their positions entirely in Q1. At the top of the heap, Anand Parekh’s Alyeska Investment Group dumped the biggest investment of the 450+ funds we watch, comprising about $3.7 million in stock., and Steven Cohen of SAC Capital Advisors was right behind this move, as the fund said goodbye to about $1.8 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 3 funds in Q1.

How are insiders trading Acadia Healthcare Company Inc (NASDAQ:ACHC)?

Insider buying is particularly usable when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time period, Acadia Healthcare Company Inc (NASDAQ:ACHC) has experienced 1 unique insiders purchasing, and 18 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Acadia Healthcare Company Inc (NASDAQ:ACHC). These stocks are Healthways, Inc. (NASDAQ:HWAY), Mednax Inc. (NYSE:MD), IPC The Hospitalist Company Inc (NASDAQ:IPCM), HEALTHSOUTH Corp. (NYSE:HLS), and Hanger Inc (NYSE:HGR). This group of stocks belong to the specialized health services industry and their market caps resemble ACHC’s market cap.

With the results exhibited by our strategies, retail investors should always watch hedge fund and insider trading sentiment, and Acadia Healthcare Company Inc (NASDAQ:ACHC) shareholders fit into this picture quite nicely.

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