To the average investor, there are many indicators investors can use to analyze Mr. Market. A pair of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can outpace their index-focused peers by a very impressive margin (see just how much).
Equally as crucial, positive insider trading sentiment is a second way to analyze the marketplace. Obviously, there are lots of reasons for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if “monkeys” understand where to look (learn more here).
Now that that’s out of the way, it’s important to study the latest info surrounding THL Credit, Inc. (NASDAQ:TCRD).
How are hedge funds trading THL Credit, Inc. (NASDAQ:TCRD)?
At the end of the second quarter, a total of 10 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.
When using filings from the hedgies we track, Omega Advisors, managed by Leon Cooperman, holds the biggest position in THL Credit, Inc. (NASDAQ:TCRD). Omega Advisors has a $22.5 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $4.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Robert B. Gillam’s McKinley Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors and Bruce Silver’s Silver Capital Management LLC.
Since THL Credit, Inc. (NASDAQ:TCRD) has witnessed declining interest from upper-tier hedge fund managers, it’s easy to see that there lies a certain “tier” of money managers that elected to cut their entire stakes heading into Q2. At the top of the heap, Charles Clough’s Clough Capital Partners said goodbye to the largest investment of all the hedgies we track, comprising about $4.1 million in stock, and Bill Miller of Legg Mason Capital Management was right behind this move, as the fund dumped about $0.6 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in THL Credit, Inc. (NASDAQ:TCRD)
Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time frame, THL Credit, Inc. (NASDAQ:TCRD) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to THL Credit, Inc. (NASDAQ:TCRD). These stocks are Capital Southwest Corporation (NASDAQ:CSWC), Westwood Holdings Group, Inc. (NYSE:WHG), Pzena Investment Management, Inc. (NYSE:PZN), PennantPark Investment Corp. (NASDAQ:PNNT), and Noah Holdings Limited (ADR) (NYSE:NOAH). All of these stocks are in the asset management industry and their market caps are similar to TCRD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Capital Southwest Corporation (NASDAQ:CSWC) | 4 | 0 | 0 |
| Westwood Holdings Group, Inc. (NYSE:WHG) | 5 | 0 | 0 |
| Pzena Investment Management, Inc. (NYSE:PZN) | 5 | 0 | 0 |
| PennantPark Investment Corp. (NASDAQ:PNNT) | 5 | 0 | 0 |
| Noah Holdings Limited (ADR) (NYSE:NOAH) | 4 | 0 | 0 |
Using the returns shown by our tactics, regular investors must always watch hedge fund and insider trading sentiment, and THL Credit, Inc. (NASDAQ:TCRD) applies perfectly to this mantra.
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