If you were to ask many traders, hedge funds are assumed to be bloated, outdated investment vehicles of a period lost to current times. Although there are more than 8,000 hedge funds in operation currently, this site aim at the masters of this group, close to 525 funds. It is widely held that this group controls the lion’s share of all hedge funds’ total assets, and by tracking their highest quality equity investments, we’ve found 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 began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as key, positive insider trading sentiment is another way to analyze the financial markets. Just as you’d expect, there are a variety of motivations for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if “monkeys” understand where to look (learn more here).
Thus, let’s discuss the newest info for Amdocs Limited (NYSE:DOX).
How are hedge funds trading Amdocs Limited (NYSE:DOX)?
At Q2’s end, a total of 24 of the hedge funds we track were bullish in this stock, a change of 14% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially.
As aggregate interest spiked, particular hedge funds have been driving this bullishness. International Value Advisers, managed by Charles de Vaulx, created the most outsized position in Amdocs Limited (NYSE:DOX). International Value Advisers had 70.3 million invested in the company at the end of the quarter. David Einhorn’s Greenlight Capital also made a $57.2 million investment in the stock during the quarter. The other funds with brand new DOX positions are Mark Travis’s Intrepid Capital Management, D. E. Shaw’s D E Shaw, and Ken Griffin’s Citadel Investment Group.
Insider trading activity in Amdocs Limited (NYSE:DOX)
Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Amdocs Limited (NYSE:DOX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Amdocs Limited (NYSE:DOX). These stocks are Jack Henry & Associates, Inc. (NASDAQ:JKHY), Solera Holdings Inc (NYSE:SLH), Total System Services, Inc. (NYSE:TSS), Iron Mountain Incorporated (NYSE:IRM), and NetSuite Inc (NYSE:N). This group of stocks belong to the business software & services industry and their market caps are closest to DOX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Jack Henry & Associates, Inc. (NASDAQ:JKHY) | 10 | 0 | 0 |
| Solera Holdings Inc (NYSE:SLH) | 11 | 0 | 0 |
| Total System Services, Inc. (NYSE:TSS) | 21 | 0 | 0 |
| Iron Mountain Incorporated (NYSE:IRM) | 29 | 0 | 0 |
| NetSuite Inc (NYSE:N) | 18 | 0 | 0 |
Using the results demonstrated by the previously mentioned strategies, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Amdocs Limited (NYSE:DOX) is no exception.
