Cim Service Provider, LLC: insider trades

10% owner, Other at Creative Media & Community Trust Corp. 41 open-market purchases and no sales not made under a pre-set plan, reported from March 28, 2014 to July 9, 2020.

Would copying Cim Service Provider, LLC’s purchases have beaten the S&P 500?

Buying each purchase the day after it was reported, an equal amount each, and holding it 12 months or until they reported a sale would have turned $10,000 on May 1, 2014 into $5,602 by November 2, 2026, −4.5% a year. The copy held shares only 24% of the time, so the fair comparison is the S&P 500 on those same days with Treasury bills otherwise: $21,924, +6.5% a year (the S&P 500 held throughout made $49,484, +13.7% a year). Beta against the index was 0.29. Twelve months after each report, the average purchase was −30.2% against the S&P 500 (median −28.3%), and 0% beat it: too few years of purchases to tell skill from luck. Measured from the trade date, the insider’s own timing, the average was −29.8%.

With 296 insiders tested, some will look skilled or unskilled by chance alone: when we replaced each insider’s stocks with random companies bought on the same days, about 5.7 cleared the bar ahead and 23.3 behind. One record on its own proves little.

Copying Cim Service Provider, LLCS&P 500, same days investedS&P 500, held throughout $10,000 copying Cim Service Provider, LLC’s open-market purchases from May 1, 2014, before costs and taxes, marked weekly. Each purchase gets the same starting stake, bought at the close of the first trading day after the report and sold 12 months later or the day after a reported sale of that stock; uninvested money earns the Treasury bill rate. “Same days invested” holds the S&P 500 only on the days the copy held shares, Treasury bills otherwise.

Return a year, copying: −4.5%
S&P 500, same days invested: +6.5% (held throughout +13.7%)
Time in shares: 24%
Sharpe ratio (S&P 500): −0.07 (0.71)
Biggest drop (S&P 500): −69% (−34%)
Market sensitivity (beta): 0.29
Purchases copied: 32

Trade by trade

Cim Service Provider, LLC: trades against the S&P 500 afterwards
Measured	Trades counted	Average vs S&P 500	Median	Went the right way	Years	t-statistic	p-value	Evidence
Purchases, 3 months after the report	32	−14.0%	−15.0%	3%	3	—	—	Not enough years
Purchases, 6 months after the report	32	−29.2%	−29.5%	0%	3	—	—	Not enough years
Purchases, 12 months after the report	32	−30.2%	−28.3%	0%	3	—	—	Not enough years
Purchases, 12 months after the trade	31	−29.8%	−28.2%	0%	3	—	—	Not enough years
Sales, 3 months after the report	0	—	—	—	—	—	—	Not enough years
Sales, 12 months after the report	0	—	—	—	—	—	—	Not enough years
Sales, 12 months after the trade	0	—	—	—	—	—	—	Not enough years

“Average vs S&P 500” is the stock’s return including dividends minus the index’s over the same dates, from the close on the first trading day after the report, or from the close on the trade date. Only windows that have finished are counted. For sales, a negative figure means the stock lagged after it was sold, so selling was the right call (green). “Went the right way” is the share of purchases that beat the index, or of sales that trailed it. The t-statistic uses one average per year of reports, because one person’s trades bunch into the same stock and weeks, and needs trades in at least four different years; the p-value comes from the t distribution with that number of years (with four years, a t of 2 has p = 0.14). “Some evidence” means p under 5%, “strong evidence” p under 1% over at least six years.

Companies traded

Company	Title on the latest filing	Purchases	Sales	First report	Latest report
Creative Media & Community Trust Corp CMCT	—	41	0	March 28, 2014	July 9, 2020

Trades and what followed

Moves are against the S&P 500; green means the trade went the insider’s way.

Reported	Traded	Company	Trade	Value	3 months after report	12 months after report	12 months after trade
July 9, 2020	July 8, 2020	CMCT	Purchase	$281,825	−36.4%	−64.5%	−52.1%
October 16, 2019	October 11, 2019	CMCT	Purchase	$47,319,036	−11.1%	−62.3%	−61.2%
August 8, 2014	August 7, 2014	CMCT	Purchase	$51,844	−11.8%	−30.4%	−33.6%
August 6, 2014	August 4, 2014	CMCT	Purchase	$58,243	−15.3%	−33.6%	−32.5%
August 1, 2014	July 31, 2014	CMCT	Purchase	$37,970	−17.3%	−32.5%	−31.5%
July 30, 2014	July 28, 2014	CMCT	Purchase	$96,032	−16.7%	−31.5%	−34.0%
July 25, 2014	July 24, 2014	CMCT	Purchase	$88,793	−15.3%	−34.0%	−32.1%
July 23, 2014	July 21, 2014	CMCT	Purchase	$163,225	−11.3%	−32.1%	−31.0%
July 18, 2014	July 17, 2014	CMCT	Purchase	$52,598	−11.6%	−31.0%	−32.5%
July 16, 2014	July 14, 2014	CMCT	Purchase	$128,905	−12.0%	−32.5%	−31.0%
July 14, 2014	July 10, 2014	CMCT	Purchase	$2,595,452	−4.5%	−31.0%	−25.9%
July 9, 2014	July 8, 2014	CMCT	Purchase	$112,932	−10.0%	−25.9%	−22.1%
July 7, 2014	July 3, 2014	CMCT	Purchase	$108,460	−3.8%	−22.1%	−19.2%
July 2, 2014	June 30, 2014	CMCT	Purchase	$214,566	+10.2%	−19.2%	−21.5%
June 27, 2014	June 25, 2014	CMCT	Purchase	$162,271	−12.7%	−21.5%	−26.0%
June 24, 2014	June 23, 2014	CMCT	Purchase	$84,109	−19.4%	−26.0%	−26.1%
June 20, 2014	June 19, 2014	CMCT	Purchase	$107,376	−24.5%	−26.1%	−24.1%
June 18, 2014	June 16, 2014	CMCT	Purchase	$160,512	−16.8%	−24.1%	−25.2%
June 13, 2014	June 12, 2014	CMCT	Purchase	$109,920	−15.2%	−25.2%	−30.7%
June 11, 2014	June 9, 2014	CMCT	Purchase	$165,336	−11.0%	−30.7%	−28.5%
June 6, 2014	June 5, 2014	CMCT	Purchase	$96,579	−9.1%	−28.5%	−26.6%
June 4, 2014	June 2, 2014	CMCT	Purchase	$144,900	−4.7%	−26.6%	−28.4%
May 30, 2014	May 29, 2014	CMCT	Purchase	$87,419	−18.7%	−28.4%	−27.1%
May 28, 2014	May 27, 2014	CMCT	Purchase	$84,430	−20.8%	−27.1%	−28.2%
May 23, 2014	May 21, 2014	CMCT	Purchase	$889,986	−21.3%	−28.2%	−26.4%
May 20, 2014	May 19, 2014	CMCT	Purchase	$77,061	−19.7%	−26.4%	−26.4%
May 16, 2014	May 15, 2014	CMCT	Purchase	$86,450	−18.4%	−26.4%	−27.4%
May 14, 2014	May 12, 2014	CMCT	Purchase	$130,435	−16.8%	−27.4%	−25.9%
May 9, 2014	May 8, 2014	CMCT	Purchase	$91,094	−17.3%	−25.9%	−31.3%
May 7, 2014	May 5, 2014	CMCT	Purchase	$129,679	−14.9%	−31.3%	−25.2%
May 2, 2014	May 1, 2014	CMCT	Purchase	$17,914	−11.0%	−25.2%	−29.5%
April 30, 2014	April 28, 2014	CMCT	Purchase	$142,968	−8.7%	−29.5%	not yet
April 25, 2014	April 23, 2014	CMCT	Purchase	$157,079	not yet	not yet	not yet
April 22, 2014	April 21, 2014	CMCT	Purchase	$211,620	not yet	not yet	not yet
April 18, 2014	April 17, 2014	CMCT	Purchase	$103,026	not yet	not yet	not yet
April 16, 2014	April 14, 2014	CMCT	Purchase	$308,186	not yet	not yet	not yet
April 11, 2014	April 10, 2014	CMCT	Purchase	$194,460	not yet	not yet	not yet
April 9, 2014	April 7, 2014	CMCT	Purchase	$291,900	not yet	not yet	not yet
April 4, 2014	April 3, 2014	CMCT	Purchase	$163,504	not yet	not yet	not yet
April 2, 2014	March 31, 2014	CMCT	Purchase	$242,352	not yet	not yet	not yet
March 28, 2014	March 26, 2014	CMCT	Purchase	$87,434	not yet	not yet	not yet

Open-market purchases and sales of at least $10,000 in companies we cover, from SEC Form 4 filings; sales made under a pre-set Rule 10b5-1 plan are not shown. “Not yet” means the window has not finished or the share price was under $5 at entry. These are the shares’ moves after each trade: they say nothing about why Cim Service Provider, LLC traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.