What Hedge Funds Think About Celadon Group, Inc. (CGI)

To many of your peers, hedge funds are viewed as overrated, outdated investment vehicles of a forgotten age. Although there are more than 8,000 hedge funds in operation today, this site aim at the crème de la crème of this group, about 525 funds. Analysts calculate that this group has its hands on the majority of the smart money’s total assets, and by paying attention to their highest performing equity investments, we’ve revealed a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum 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 outpaced the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Equally as crucial, optimistic insider trading sentiment is a second way to analyze the stock market universe. Just as you’d expect, there are a number of reasons for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the useful potential of this strategy if you understand where to look (learn more here).

What’s more, it’s important to study the newest info surrounding Celadon Group, Inc. (NYSE:CGI).

What does the smart money think about Celadon Group, Inc. (NYSE:CGI)?

At the end of the second quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of -40% from the previous quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes substantially.

According to our 13F database, Chuck Royce’s Royce & Associates had the largest position in Celadon Group, Inc. (NYSE:CGI), worth close to $15.4 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Israel Englander of Millennium Management, with a $0.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Ken Griffin’s Citadel Investment Group, Cliff Asness’s AQR Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.

As Celadon Group, Inc. (NYSE:CGI) has faced dropping sentiment from upper-tier hedge fund managers, it’s safe to say that there lies a certain “tier” of hedge funds that slashed their full holdings last quarter. At the top of the heap, Richard Driehaus’s Driehaus Capital sold off the largest stake of the “upper crust” of funds we monitor, worth close to $3 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also said goodbye to its stock, about $0.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds last quarter.

How are insiders trading Celadon Group, Inc. (NYSE:CGI)?

Insider buying made by high-level executives is best served when the primary stock in question has seen transactions within the past six months. Over the last 180-day time period, Celadon Group, Inc. (NYSE:CGI) has seen zero unique insiders buying, 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 Celadon Group, Inc. (NYSE:CGI). These stocks are Arkansas Best Corporation (NASDAQ:ABFS), Universal Truckload Services, Inc. (NASDAQ:UACL), Saia Inc (NASDAQ:SAIA), Echo Global Logistics, Inc. (NASDAQ:ECHO), and Marten Transport, Ltd (NASDAQ:MRTN). This group of stocks are in the trucking industry and their market caps are closest to CGI’s market cap.

Using the results demonstrated by the previously mentioned analyses, average investors must always pay attention to hedge fund and insider trading sentiment, and Celadon Group, Inc. (NYSE:CGI) applies perfectly to this mantra.

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