Should You Avoid Team, Inc. (TISI)?

Team, Inc. (NYSE:TISI) shareholders have witnessed a decrease in support from the world’s most elite money managers recently.

According to most investors, hedge funds are assumed to be slow, outdated financial vehicles of years past. While there are greater than 8000 funds trading at present, we choose to focus on the bigwigs of this club, close to 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total capital, and by paying attention to their best equity investments, we have spotted a few investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 topped the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).

Equally as integral, optimistic insider trading activity is another way to break down the financial markets. Obviously, there are many incentives for an executive to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this strategy if piggybackers know what to do (learn more here).

Consequently, we’re going to take a peek at the key action regarding Team, Inc. (NYSE:TISI).

Hedge fund activity in Team, Inc. (NYSE:TISI)

Heading into Q2, a total of 9 of the hedge funds we track held long positions in this stock, a change of 0% from the first quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, Ariel Investments, managed by John W. Rogers, holds the largest position in Team, Inc. (NYSE:TISI). Ariel Investments has a $40 million position in the stock, comprising 0.7% of its 13F portfolio. On Ariel Investments’s heels is Royce & Associates, managed by Chuck Royce, which held a $21.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Phill Gross and Robert Atchinson’s Adage Capital Management, Richard Driehaus’s Driehaus Capital and Andrew Sandler’s Sandler Capital Management.

Due to the fact that Team, Inc. (NYSE:TISI) has experienced declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of money managers that decided to sell off their full holdings in Q1. It’s worth mentioning that Richard S. Meisenberg’s ACK Asset Management said goodbye to the largest investment of the 450+ funds we key on, valued at about $7.2 million in stock.. Scott Burney’s fund, Bluefin Investment Management, also said goodbye to its stock, about $5.3 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Insider trading activity in Team, Inc. (NYSE:TISI)

Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time period, Team, Inc. (NYSE:TISI) has seen 1 unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Team, Inc. (NYSE:TISI). These stocks are RPX Corp (NASDAQ:RPXC), Insperity Inc (NYSE:NSP), WNS (Holdings) Limited (ADR) (NYSE:WNS), LivePerson, Inc. (NASDAQ:LPSN), and InnerWorkings, Inc. (NASDAQ:INWK). This group of stocks belong to the business services industry and their market caps match TISI’s market cap.