What's a smart Insight Enterprises, Inc. (NASDAQ:NSIT) investor to do?
In the eyes of many traders, hedge funds are assumed to be overrated, old financial vehicles of a period lost to current times. Although there are over 8,000 hedge funds trading today, this site aim at the top tier of this club, close to 525 funds. It is assumed that this group has its hands on the lion's share of the smart money's total capital, and by tracking their best picks, we've unsheathed a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outperformed 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 (find a sample of our picks).
Equally as key, positive insider trading sentiment is a second way to analyze the marketplace. There are lots of stimuli for a bullish insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this strategy if piggybackers understand what to do (learn more here).
What's more, we're going to study the latest info for Insight Enterprises, Inc. (NASDAQ:NSIT).
In preparation for the third quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 30% from one quarter earlier. With the smart money's sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were upping their stakes considerably.
When using filings from the hedgies we track, Pzena Investment Management, managed by Richard S. Pzena, holds the most valuable position in Insight Enterprises, Inc. (NASDAQ:NSIT). Pzena Investment Management has a $27.9 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is AQR Capital Management, managed by Cliff Asness, which held a $12.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Joel Greenblatt's Gotham Asset Management, Ken Griffin's Citadel Investment Group and Neil Chriss's Hutchin Hill Capital.
As aggregate interest spiked, certain bigger names were breaking ground themselves. Pzena Investment Management, managed by Richard S. Pzena, created the most valuable position in Insight Enterprises, Inc. (NASDAQ:NSIT). Pzena Investment Management had 27.9 million invested in the company at the end of the quarter. Cliff Asness's AQR Capital Management also initiated a $12.5 million position during the quarter. The other funds with brand new NSIT positions are Joel Greenblatt's Gotham Asset Management, Ken Griffin's Citadel Investment Group, and Neil Chriss's Hutchin Hill Capital.
Bullish insider trading is most useful when the company we're looking at has experienced transactions within the past 180 days. Over the last half-year time period, Insight Enterprises, Inc. (NASDAQ:NSIT) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll check out the relationship between both of these indicators in other stocks similar to Insight Enterprises, Inc. (NASDAQ:NSIT). These stocks are Lifelock Inc (NYSE:LOCK), FleetMatics Group PLC (NYSE:FLTX), Jive Software Inc (NASDAQ:JIVE), Monotype Imaging Holdings Inc. (NASDAQ:TYPE), and Imperva Inc (NYSE:IMPV). This group of stocks are the members of the application software industry and their market caps match NSIT's market cap.