Digital River, Inc. (NASDAQ:DRIV) was in 12 hedge funds' portfolio at the end of the first quarter of 2013. DRIV shareholders have witnessed a decrease in hedge fund sentiment lately. There were 14 hedge funds in our database with DRIV holdings at the end of the previous quarter.
In today’s marketplace, there are dozens of indicators investors can use to analyze publicly traded companies. A duo of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform the broader indices by a significant margin (see just how much).
Just as beneficial, positive insider trading sentiment is a second way to break down the marketplace. Just as you'd expect, there are many incentives for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if "monkeys" understand what to do (learn more here).
With all of this in mind, we're going to take a peek at the key action regarding Digital River, Inc. (NASDAQ:DRIV).
In preparation for this quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of -14% from the previous quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings meaningfully.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the largest position in Digital River, Inc. (NASDAQ:DRIV). Renaissance Technologies has a $9.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $4.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Steven Cohen's SAC Capital Advisors, John Overdeck and David Siegel's Two Sigma Advisors and Ken Griffin's Citadel Investment Group.
Seeing as Digital River, Inc. (NASDAQ:DRIV) has witnessed falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedge funds who were dropping their positions entirely in Q1. Interestingly, Joel Greenblatt's Gotham Asset Management cut the largest investment of all the hedgies we monitor, worth close to $2.1 million in stock.. Paul Tudor Jones's fund, Tudor Investment Corp, also said goodbye to its stock, about $0.3 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 2 funds in Q1.
Insider trading activity, especially when it's bullish, is particularly usable when the company we're looking at has experienced transactions within the past six months. Over the latest six-month time frame, Digital River, Inc. (NASDAQ:DRIV) has experienced 4 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let's go over hedge fund and insider activity in other stocks similar to Digital River, Inc. (NASDAQ:DRIV). These stocks are ClickSoftware Technologies Ltd. (NASDAQ:CKSW), QuinStreet Inc (NASDAQ:QNST), Vocus, Inc. (NASDAQ:VOCS), Demand Media Inc (NYSE:DMD), and InterNAP Network Services (NASDAQ:INAP). All of these stocks are in the internet software & services industry and their market caps resemble DRIV's market cap.