Hedge Funds Are Selling Cenveo, Inc. (CVO)

Cenveo, Inc. (NYSE:CVO) was in 10 hedge funds’ portfolio at the end of the first quarter of 2013. CVO has seen a decrease in hedge fund sentiment of late. There were 11 hedge funds in our database with CVO holdings at the end of the previous quarter.

In today’s marketplace, there are tons of gauges shareholders can use to analyze the equity markets. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can trounce their index-focused peers by a significant margin (see just how much).

Equally as integral, positive insider trading activity is another way to parse down the investments you’re interested in. As the old adage goes: there are a number of motivations for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the impressive potential of this tactic if shareholders know where to look (learn more here).

Consequently, it’s important to take a peek at the recent action encompassing Cenveo, Inc. (NYSE:CVO).

Hedge fund activity in Cenveo, Inc. (NYSE:CVO)

At the end of the first quarter, a total of 10 of the hedge funds we track were long in this stock, a change of -9% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings considerably.

Of the funds we track, Elm Ridge Capital, managed by Ron Gutfleish, holds the biggest position in Cenveo, Inc. (NYSE:CVO). Elm Ridge Capital has a $6.9 million position in the stock, comprising 0.8% of its 13F portfolio. On Elm Ridge Capital’s heels is Phil Frohlich of Prescott Group Capital Management, with a $2.8 million position; 0.6% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Steven Cohen’s SAC Capital Advisors, D. E. Shaw’s D E Shaw and Andy Redleaf’s Whitebox Advisors.

Seeing as Cenveo, Inc. (NYSE:CVO) has faced declining sentiment from hedge fund managers, we can see that there lies a certain “tier” of hedgies who sold off their full holdings last quarter. It’s worth mentioning that Craig C. Albert’s Sheffield Asset Management said goodbye to the largest stake of the 450+ funds we watch, worth an estimated $1.2 million in stock., and Peter Algert and Kevin Coldiron of Algert Coldiron Investors was right behind this move, as the fund sold off about $0.4 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds last quarter.

How are insiders trading Cenveo, Inc. (NYSE:CVO)?

Insider buying is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest half-year time period, Cenveo, Inc. (NYSE:CVO) has seen 6 unique insiders buying, 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 Cenveo, Inc. (NYSE:CVO). These stocks are Collectors Universe, Inc. (NASDAQ:CLCT), Digital Generation Inc (NASDAQ:DGIT), Reis Inc (NASDAQ:REIS), Acquity Group Ltd (NYSEAMEX:AQ), and Asta Funding, Inc. (NASDAQ:ASFI). This group of stocks are the members of the business services industry and their market caps are closest to CVO’s market cap.