What’s a smart World Acceptance Corp. (NASDAQ:WRLD) investor to do?
Now, according to many of your peers, hedge funds are viewed as overrated, outdated financial tools of a period lost to current times. Although there are In excess of 8,000 hedge funds with their doors open today, this site looks at the top tier of this club, about 525 funds. It is assumed that this group controls the lion’s share of the smart money’s total capital, and by keeping an eye on their highest quality investments, we’ve brought to light a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped 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 trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Just as crucial, bullish insider trading sentiment is another way to look at the world of equities. Obviously, there are a number of reasons for a corporate insider to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this method if you know where to look (learn more here).
Thus, it’s important to study the latest info for World Acceptance Corp. (NASDAQ:WRLD).
How are hedge funds trading World Acceptance Corp. (NASDAQ:WRLD)?
At Q2’s end, a total of 13 of the hedge funds we track were long in this stock, a change of 86% from the first quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings meaningfully.
With a general bullishness amongst the titans, specific money managers have jumped into World Acceptance Corp. (NASDAQ:WRLD) headfirst. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the most outsized position in World Acceptance Corp. (NASDAQ:WRLD). Arrowstreet Capital had 4.5 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $4 million investment in the stock during the quarter. The other funds with brand new WRLD positions are Jim Simons’s Renaissance Technologies, Edward Goodnow’s Goodnow Investment Group, and Cliff Asness’s AQR Capital Management.
How are insiders trading World Acceptance Corp. (NASDAQ:WRLD)?
Insider buying is at its handiest when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, World Acceptance Corp. (NASDAQ:WRLD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to World Acceptance Corp. (NASDAQ:WRLD). These stocks are First Cash Financial Services, Inc. (NASDAQ:FCFS), DFC Global Corp (NASDAQ:DLLR), Nelnet, Inc. (NYSE:NNI), Cash America International, Inc. (NYSE:CSH), and PHH Corporation (NYSE:PHH). This group of stocks are in the credit services industry and their market caps match WRLD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| First Cash Financial Services, Inc. (NASDAQ:FCFS) | 7 | 0 | 0 |
| DFC Global Corp (NASDAQ:DLLR) | 13 | 0 | 0 |
| Nelnet, Inc. (NYSE:NNI) | 16 | 0 | 0 |
| Cash America International, Inc. (NYSE:CSH) | 14 | 0 | 0 |
| PHH Corporation (NYSE:PHH) | 23 | 0 | 0 |
Using the results demonstrated by Insider Monkey’s studies, average investors must always watch hedge fund and insider trading activity, and World Acceptance Corp. (NASDAQ:WRLD) applies perfectly to this mantra.
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