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Do Hedge Funds and Insiders Love Synchronoss Technologies, Inc. (SNCR)?

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Is Synchronoss Technologies, Inc. (NASDAQ:SNCR) a buy here? Money managers are getting more bullish. The number of bullish hedge fund positions moved up by 8 in recent months.

In the eyes of most investors, hedge funds are perceived as unimportant, old financial tools of years past. While there are greater than 8000 funds with their doors open today, we at Insider Monkey look at the upper echelon of this group, around 450 funds. It is estimated that this group oversees the majority of all hedge funds’ total asset base, and by paying attention to their best investments, we have spotted a number of investment strategies that have historically beaten the S&P 500 index. 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 began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Equally as beneficial, optimistic insider trading activity is another way to break down the stock market universe. Just as you’d expect, there are lots of stimuli for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this tactic if investors know where to look (learn more here).

Consequently, we’re going to take a peek at the recent action regarding Synchronoss Technologies, Inc. (NASDAQ:SNCR).

How have hedgies been trading Synchronoss Technologies, Inc. (NASDAQ:SNCR)?

Heading into Q2, a total of 15 of the hedge funds we track held long positions in this stock, a change of 114% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings meaningfully.

Synchronoss Technologies Inc. (SNCR)According to our comprehensive database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the most valuable position in Synchronoss Technologies, Inc. (NASDAQ:SNCR). Adage Capital Management has a $52.3 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Harvest Capital Strategies, managed by Joseph A. Jolson, which held a $13.2 million position; 1% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Mark N. Diker’s Diker Management, Dennis Leibowitz’s Act II Capital and Ken Griffin’s Citadel Investment Group.

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Act II Capital, managed by Dennis Leibowitz, assembled the largest position in Synchronoss Technologies, Inc. (NASDAQ:SNCR). Act II Capital had 6.1 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $1.4 million position during the quarter. The other funds with brand new SNCR positions are Israel Englander’s Millennium Management, Peter A. Wright’s P.A.W. CAPITAL PARTNERS, and Steve Shapiro’s Intrepid Capital Management Inc DE.

How are insiders trading Synchronoss Technologies, Inc. (NASDAQ:SNCR)?

Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past 180 days. Over the last half-year time frame, Synchronoss Technologies, Inc. (NASDAQ:SNCR) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Synchronoss Technologies, Inc. (NASDAQ:SNCR). These stocks are Manhattan Associates, Inc. (NASDAQ:MANH), Jive Software Inc (NASDAQ:JIVE), Advent Software, Inc. (NASDAQ:ADVS), Progress Software Corporation (NASDAQ:PRGS), and NIC Inc. (NASDAQ:EGOV). This group of stocks are the members of the application software industry and their market caps are closest to SNCR’s market cap.

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