Hedge Funds Are Crazy About Computer Task Group, Inc. (CTGX)

Computer Task Group, Inc. (NASDAQ:CTGX) was in 6 hedge funds’ portfolio at the end of the first quarter of 2013. CTGX shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. There were 5 hedge funds in our database with CTGX positions at the end of the previous quarter.

In today’s marketplace, there are plenty of indicators shareholders can use to track Mr. Market. A duo of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can outclass the S&P 500 by a solid margin (see just how much).

Just as beneficial, bullish insider trading sentiment is a second way to break down the marketplace. Obviously, there are lots of incentives for a bullish insider to downsize shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this strategy if “monkeys” know what to do (learn more here).

With all of this in mind, let’s take a glance at the key action surrounding Computer Task Group, Inc. (NASDAQ:CTGX).

What have hedge funds been doing with Computer Task Group, Inc. (NASDAQ:CTGX)?

Heading into Q2, a total of 6 of the hedge funds we track were bullish in this stock, a change of 20% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings considerably.

According to our comprehensive database, Chuck Royce’s Royce & Associates had the most valuable position in Computer Task Group, Inc. (NASDAQ:CTGX), worth close to $9.2 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by Robert B. Gillam of McKinley Capital Management, with a $2.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers with similar optimism include Joel Greenblatt’s Gotham Asset Management, Israel Englander’s Millennium Management and Jim Simons’s Renaissance Technologies.

Now, some big names were leading the bulls’ herd. Millennium Management, managed by Israel Englander, created the most valuable position in Computer Task Group, Inc. (NASDAQ:CTGX). Millennium Management had 0.9 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $0.3 million position during the quarter. The only other fund with a brand new CTGX position is Neil Chriss’s Hutchin Hill Capital.

Insider trading activity in Computer Task Group, Inc. (NASDAQ:CTGX)

Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time frame, Computer Task Group, Inc. (NASDAQ:CTGX) has seen 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Computer Task Group, Inc. (NASDAQ:CTGX). These stocks are iSoftStone Holdings Ltd (ADR) (NYSE:ISS), 21Vianet Group Inc (NASDAQ:VNET), EPIQ Systems, Inc. (NASDAQ:EPIQ), Greenway Medical Technologies, Inc. (NYSE:GWAY), and CIBER, Inc. (NYSE:CBR). All of these stocks are in the information technology services industry and their market caps are similar to CTGX’s market cap.

With the returns shown by the aforementioned tactics, everyday investors should always pay attention to hedge fund and insider trading activity, and Computer Task Group, Inc. (NASDAQ:CTGX) applies perfectly to this mantra.

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