Boingo Wireless Inc (NASDAQ:WIFI) has experienced an increase in support from the world’s most elite money managers recently.
In the eyes of most traders, hedge funds are perceived as slow, outdated financial vehicles of yesteryear. While there are over 8000 funds in operation at the moment, we hone in on the crème de la crème of this group, close to 450 funds. It is estimated that this group oversees most of the hedge fund industry’s total asset base, and by keeping an eye on their top picks, we have found a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year 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 topped the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).
Just as integral, bullish insider trading sentiment is another way to break down the world of equities. Just as you’d expect, there are plenty of reasons for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this strategy if piggybackers understand where to look (learn more here).
Now, we’re going to take a peek at the key action surrounding Boingo Wireless Inc (NASDAQ:WIFI).
What does the smart money think about Boingo Wireless Inc (NASDAQ:WIFI)?
At the end of the fourth quarter, a total of 7 of the hedge funds we track were long in this stock, a change of 75% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings substantially.
When looking at the hedgies we track, Louis Bacon’s Moore Global Investments had the most valuable position in Boingo Wireless Inc (NASDAQ:WIFI), worth close to $21.2 million, accounting for 0.5% of its total 13F portfolio. On Moore Global Investments’s heels is Amy Minella of Cardinal Capital, with a $6.6 million position; 0.5% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Edward Gilhuly and Scott Stuart’s Sageview Capital, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
As one would reasonably expect, key money managers have been driving this bullishness. Moore Global Investments, managed by Louis Bacon, established the biggest position in Boingo Wireless Inc (NASDAQ:WIFI). Moore Global Investments had 21.2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.5 million position during the quarter. The only other fund with a brand new WIFI position is John Overdeck and David Siegel’s Two Sigma Advisors.
How are insiders trading Boingo Wireless Inc (NASDAQ:WIFI)?
Bullish insider trading is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest half-year time period, Boingo Wireless Inc (NASDAQ:WIFI) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Boingo Wireless Inc (NASDAQ:WIFI). These stocks are Greenway Medical Technologies, Inc. (NYSE:GWAY), Computer Task Group, Inc. (NASDAQ:CTGX), CIBER, Inc. (NYSE:CBR), iSoftStone Holdings Ltd (ADR) (NYSE:ISS), and Digimarc Corp (NASDAQ:DMRC). This group of stocks belong to the information technology services industry and their market caps are similar to WIFI’s market cap.