Is Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) the right investment to pursue these days? Investors who are in the know are becoming more confident. The number of bullish hedge fund positions advanced by 4 in recent months.
At the moment, there are a multitude of indicators investors can use to analyze Mr. Market. A couple of the most innovative 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 top hedge fund managers can trounce their index-focused peers by a healthy margin (see just how much).
Equally as important, bullish insider trading activity is another way to parse down the financial markets. Just as you’d expect, there are plenty of stimuli for an insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this method if piggybackers know where to look (learn more here).
With these “truths” under our belt, it’s important to take a gander at the key action regarding Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP).
What have hedge funds been doing with Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP)?
In preparation for this year, a total of 19 of the hedge funds we track were bullish in this stock, a change of 27% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly.
When looking at the hedgies we track, Bain Capital’s Brookside Capital had the most valuable position in Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), worth close to $128 million, accounting for 2.9% of its total 13F portfolio. Sitting at the No. 2 spot is Generation Investment Management, managed by David Blood and Al Gore, which held a $104 million position; 7.2% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include John Thaler’s JAT Capital Management, J Kevin Kenny Jr’s Emerging Sovereign Group and Glenn Russell Dubin’s Highbridge Capital Management.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Emerging Sovereign Group, managed by J Kevin Kenny Jr, created the largest position in Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP). Emerging Sovereign Group had 70 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $50 million position during the quarter. The other funds with new positions in the stock are Andreas Halvorsen’s Viking Global, Larry Robbins’s Glenview Capital, and Christopher MedlockáJames’s Partner Fund Management.
Insider trading activity in Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP)
Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results demonstrated by the aforementioned tactics, everyday investors should always keep an eye on hedge fund and insider trading activity, and Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is an important part of this process.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.
