Should You Buy ARC Document Solutions Inc (ARC)?

Is ARC Document Solutions Inc (NYSE:ARC) a safe investment today? Investors who are in the know are becoming hopeful. The number of long hedge fund positions increased by 2 lately.

In today’s marketplace, there are a multitude of indicators investors can use to monitor Mr. Market. A pair of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can outpace the broader indices by a significant margin (see just how much).

Equally as integral, bullish insider trading activity is another way to parse down the investments you’re interested in. There are plenty of incentives for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Several empirical studies have demonstrated the useful potential of this tactic if “monkeys” know where to look (learn more here).

Consequently, let’s take a peek at the recent action regarding ARC Document Solutions Inc (NYSE:ARC).

How are hedge funds trading ARC Document Solutions Inc (NYSE:ARC)?

In preparation for this quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 20% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their stakes considerably.

Of the funds we track, Stadium Capital Management, managed by Alexander Medina Seaver, holds the biggest position in ARC Document Solutions Inc (NYSE:ARC). Stadium Capital Management has a $14.9 million position in the stock, comprising 3.3% of its 13F portfolio. Sitting at the No. 2 spot is Pzena Investment Management, managed by Richard S. Pzena, which held a $8.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include John W. Rogers’s Ariel Investments, D. E. Shaw’s D E Shaw and Jim Simons’s Renaissance Technologies.

As aggregate interest increased, specific money managers were breaking ground themselves. Ariel Investments, managed by John W. Rogers, established the biggest position in ARC Document Solutions Inc (NYSE:ARC). Ariel Investments had 4.1 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $2.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Ken Brodkowitz and Mike Vermut’s Newland Capital, and Ken Gray and Steve Walsh’s Bryn Mawr Capital.

How have insiders been trading ARC Document Solutions Inc (NYSE:ARC)?

Insider purchases made by high-level executives is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the latest six-month time period, ARC Document Solutions Inc (NYSE:ARC) has seen 5 unique insiders buying, and 1 insider sales (see the details of insider trades here).

With the results shown by Insider Monkey’s time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and ARC Document Solutions Inc (NYSE:ARC) is an important part of this process.

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