CACI International Inc (CACI): Are Hedge Funds Right About This Stock?

Is CACI International Inc (NYSE:CACI) ready to rally soon? The smart money is becoming hopeful. The number of bullish hedge fund bets increased by 2 in recent months.

In the eyes of most market participants, hedge funds are viewed as worthless, old financial tools of the past. While there are more than 8000 funds in operation at the moment, we at Insider Monkey look at the bigwigs of this club, around 450 funds. Most estimates calculate that this group oversees the majority of the hedge fund industry’s total capital, and by watching their top picks, we have figured out a number of investment strategies that have historically outperformed Mr. 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 began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Just as integral, positive insider trading activity is another way to break down the investments you’re interested in. There are a number of reasons for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this method if shareholders understand what to do (learn more here).

Now, it’s important to take a glance at the latest action surrounding CACI International Inc (NYSE:CACI).

What have hedge funds been doing with CACI International Inc (NYSE:CACI)?

Heading into Q2, a total of 12 of the hedge funds we track were long in this stock, a change of 20% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, Blue Harbour Group, managed by Clifton S. Robbins, holds the most valuable position in CACI International Inc (NYSE:CACI). Blue Harbour Group has a $111.2 million position in the stock, comprising 11.4% of its 13F portfolio. On Blue Harbour Group’s heels is Wallace Weitz of Wallace R. Weitz & Co., with a $18.3 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, Joel Greenblatt’s Gotham Asset Management and Ken Griffin’s Citadel Investment Group.

Consequently, key hedge funds were breaking ground themselves. Bridgewater Associates, managed by Ray Dalio, assembled the most valuable position in CACI International Inc (NYSE:CACI). Bridgewater Associates had 1.4 million invested in the company at the end of the quarter. Israel Englander’s Catapult Capital Management also initiated a $0.5 million position during the quarter. The following funds were also among the new CACI investors: Israel Englander’s Millennium Management, Andy Redleaf’s Whitebox Advisors, and Mark A. Nordlicht’s Platinum Management.

What do corporate executives and insiders think about CACI International Inc (NYSE:CACI)?

Bullish insider trading is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time period, CACI International Inc (NYSE:CACI) has seen zero unique insiders buying, and 9 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to CACI International Inc (NYSE:CACI). These stocks are AECOM Technology Corp (NYSE:ACM), The Shaw Group Inc. (NYSE:SHAW), Mistras Group, Inc. (NYSE:MG), Stantec Inc. (USA) (NYSE:STN), and Tetra Tech, Inc. (NASDAQ:TTEK). All of these stocks are in the technical services industry and their market caps match CACI’s market cap.