Do Hedge Funds and Insiders Love Splunk Inc (NASDAQ:SPLK)?

Splunk Inc (NASDAQ:SPLK) has experienced an increase in support from the world’s most elite money managers in recent months.

Splunk Inc (NASDAQ:SPLK)

According to most investors, hedge funds are seen as worthless, old investment tools of yesteryear. While there are greater than 8000 funds in operation at present, we at Insider Monkey look at the bigwigs of this club, about 450 funds. It is widely believed that this group controls the lion’s share of the smart money’s total capital, and by watching their best equity investments, we have unsheathed a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year 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 25 percentage points in 6.5 month (see the details here).

Just as integral, optimistic insider trading activity is a second way to break down the financial markets. There are a variety of reasons for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).

With these “truths” under our belt, we’re going to take a glance at the recent action surrounding Splunk Inc (NASDAQ:SPLK).

What does the smart money think about Splunk Inc (NASDAQ:SPLK)?

At the end of the fourth quarter, a total of 22 of the hedge funds we track held long positions in this stock, a change of 22% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings significantly.

According to our comprehensive database, Criterion Capital, managed by Christopher Lord, holds the most valuable position in Splunk Inc (NASDAQ:SPLK). Criterion Capital has a $44 million position in the stock, comprising 2.4% of its 13F portfolio. On Criterion Capital’s heels is Ken Griffin of Citadel Investment Group, with a $31 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Steven Cohen’s SAC Capital Advisors, Jim Simons’s Renaissance Technologies and Donald Chiboucis’s Columbus Circle Investors.

As one would reasonably expect, specific money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, initiated the biggest position in Splunk Inc (NASDAQ:SPLK). Citadel Investment Group had 31 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $22 million investment in the stock during the quarter. The other funds with brand new SPLK positions are Jim Simons’s Renaissance Technologies, George Soros’s Soros Fund Management, and SAC Subsidiary’s CR Intrinsic Investors.

How have insiders been trading Splunk Inc (NASDAQ:SPLK)?

Insider buying is most useful when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time frame, Splunk Inc (NASDAQ:SPLK) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned studies, retail investors must always watch hedge fund and insider trading activity, and Splunk Inc (NASDAQ:SPLK) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!