Should FTI Consulting, Inc. (NYSE:FCN) investors track the following data?
In the eyes of many market players, hedge funds are viewed as overrated, outdated financial vehicles of a period lost to current times. Although there are more than 8,000 hedge funds with their doors open currently, Insider Monkey aim at the upper echelon of this club, close to 525 funds. It is widely held that this group controls the lion’s share of the hedge fund industry’s total assets, and by monitoring their highest performing equity investments, we’ve determined a few investment strategies that have historically beaten the S&P 500. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as useful, bullish insider trading sentiment is another way to look at the financial markets. There are a number of incentives for an executive to cut shares of his or her company, but only one, very obvious reason why they would buy. Various empirical studies have demonstrated the impressive potential of this tactic if you understand what to do (learn more here).
Furthermore, we’re going to analyze the newest info for FTI Consulting, Inc. (NYSE:FCN).
What does the smart money think about FTI Consulting, Inc. (NYSE:FCN)?
At the end of the second quarter, a total of 13 of the hedge funds we track were long in this stock, a change of 86% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.
When using filings from the hedgies we track, Intrepid Capital Management, managed by Mark Travis, holds the most valuable position in FTI Consulting, Inc. (NYSE:FCN). Intrepid Capital Management has a $36.9 million position in the stock, comprising 6.5% of its 13F portfolio. The second largest stake is held by Wallace Weitz of Wallace R. Weitz & Co., with a $6.1 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Israel Englander’s Millennium Management, Jim Simons’s Renaissance Technologies and Joel Greenblatt’s Gotham Asset Management.
Consequently, particular hedge funds have been driving this bullishness. Intrepid Capital Management, managed by Mark Travis, initiated the largest position in FTI Consulting, Inc. (NYSE:FCN). Intrepid Capital Management had 36.9 million invested in the company at the end of the quarter. Wallace Weitz’s Wallace R. Weitz & Co. also initiated a $6.1 million position during the quarter. The following funds were also among the new FCN investors: Israel Englander’s Millennium Management, Jim Simons’s Renaissance Technologies, and Joel Greenblatt’s Gotham Asset Management.
How have insiders been trading FTI Consulting, Inc. (NYSE:FCN)?
Insider buying made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the latest 180-day time frame, FTI Consulting, Inc. (NYSE:FCN) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to FTI Consulting, Inc. (NYSE:FCN). These stocks are Wageworks Inc (NYSE:WAGE), Huron Consulting Group (NASDAQ:HURN), Accretive Health, Inc. (NYSE:AH), The Corporate Executive Board Company (NYSE:CEB), and Booz Allen Hamilton Holding Corporation (NYSE:BAH). All of these stocks are in the management services industry and their market caps match FCN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Wageworks Inc (NYSE:WAGE) | 11 | 0 | 0 |
| Huron Consulting Group (NASDAQ:HURN) | 11 | 0 | 0 |
| Accretive Health, Inc. (NYSE:AH) | 16 | 0 | 0 |
| The Corporate Executive Board Company (NYSE:CEB) | 9 | 0 | 0 |
| Booz Allen Hamilton Holding Corporation (NYSE:BAH) | 5 | 0 | 0 |
Using the results shown by our studies, regular investors must always track hedge fund and insider trading activity, and FTI Consulting, Inc. (NYSE:FCN) applies perfectly to this mantra.
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