This Metric Says You Are Smart to Sell Catamaran Corp (USA) (CTRX)

Catamaran Corp (USA) (NASDAQ:CTRX) was in 20 hedge funds’ portfolio at the end of March. CTRX investors should be aware of a decrease in activity from the world’s largest hedge funds in recent months. There were 22 hedge funds in our database with CTRX holdings at the end of the previous quarter.

In the financial world, there are tons of gauges shareholders can use to watch Mr. Market. Some of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can trounce their index-focused peers by a very impressive amount (see just how much).

Equally as beneficial, positive insider trading activity is a second way to break down the financial markets. As the old adage goes: there are plenty of stimuli for an insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).

With all of this in mind, we’re going to take a gander at the key action regarding Catamaran Corp (USA) (NASDAQ:CTRX).

How have hedgies been trading Catamaran Corp (USA) (NASDAQ:CTRX)?

Heading into Q2, a total of 20 of the hedge funds we track were long in this stock, a change of -9% from the first quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes meaningfully.

When looking at the hedgies we track, Tiger Consumer Management, managed by Patrick McCormack, holds the biggest position in Catamaran Corp (USA) (NASDAQ:CTRX). Tiger Consumer Management has a $104.5 million position in the stock, comprising 4.2% of its 13F portfolio. Coming in second is Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, which held a $42.4 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Ken Griffin’s Citadel Investment Group, Richard Driehaus’s Driehaus Capital and Israel Englander’s Millennium Management.

Since Catamaran Corp (USA) (NASDAQ:CTRX) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there were a few fund managers who sold off their entire stakes last quarter. It’s worth mentioning that Andreas Halvorsen’s Viking Global sold off the biggest stake of the “upper crust” of funds we watch, worth an estimated $32.6 million in stock. Van Schreiber’s fund, Bennett Lawrence Management, also said goodbye to its stock, about $5.1 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 2 funds last quarter.

How are insiders trading Catamaran Corp (USA) (NASDAQ:CTRX)?

Bullish insider trading 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, Catamaran Corp (USA) (NASDAQ:CTRX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Catamaran Corp (USA) (NASDAQ:CTRX). These stocks are BMC Software, Inc. (NASDAQ:BMC), F5 Networks, Inc. (NASDAQ:FFIV), Red Hat, Inc. (NYSE:RHT), Workday Inc (NYSE:WDAY), and CA, Inc. (NASDAQ:CA). This group of stocks are the members of the application software industry and their market caps match CTRX’s market cap.