Tangoe Inc (NASDAQ:TNGO) has seen a decrease in activity from the world’s largest hedge funds lately.
In the eyes of most traders, hedge funds are seen as slow, old financial vehicles of yesteryear. While there are greater than 8000 funds in operation at the moment, we hone in on the top tier of this group, close to 450 funds. It is estimated that this group controls the majority of all hedge funds’ total capital, and by keeping an eye on their top picks, we have formulated a few investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per 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 outperformed the S&P 500 index by 24 percentage points in 7 months (see the details here).
Equally as beneficial, bullish insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are plenty of motivations for an insider to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this strategy if investors know what to do (learn more here).
Consequently, it’s important to take a glance at the latest action regarding Tangoe Inc (NASDAQ:TNGO).
How are hedge funds trading Tangoe Inc (NASDAQ:TNGO)?
Heading into 2013, a total of 7 of the hedge funds we track were long in this stock, a change of -46% from the third quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially.
Of the funds we track, Columbus Circle Investors, managed by Donald Chiboucis, holds the biggest position in Tangoe Inc (NASDAQ:TNGO). Columbus Circle Investors has a $16.7 million position in the stock, comprising 0.1% of its 13F portfolio. On Columbus Circle Investors’s heels is Joe DiMenna of ZWEIG DIMENNA PARTNERS, with a $11.2 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Israel Englander’s Millennium Management, Steve Shapiro’s Intrepid Capital Management Inc DE and Paul Tudor Jones’s Tudor Investment Corp.
Seeing as Tangoe Inc (NASDAQ:TNGO) has witnessed declining sentiment from the smart money, logic holds that there were a few hedge funds that elected to cut their full holdings in Q4. At the top of the heap, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital dropped the largest investment of all the hedgies we key on, worth about $7.8 million in stock.. Anand Parekh’s fund, Alyeska Investment Group, also dropped its stock, about $2.7 million worth. These moves are important to note, as total hedge fund interest dropped by 6 funds in Q4.
What do corporate executives and insiders think about Tangoe Inc (NASDAQ:TNGO)?
Insider buying is best served when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time period, Tangoe Inc (NASDAQ:TNGO) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Tangoe Inc (NASDAQ:TNGO). These stocks are CSG Systems International, Inc. (NASDAQ:CSGS), Ebix Inc (NASDAQ:EBIX), Descartes Systems Group (USA) (NASDAQ:DSGX), Perficient, Inc. (NASDAQ:PRFT), and Servicesource International Inc (NASDAQ:SREV). This group of stocks belong to the business software & services industry and their market caps resemble TNGO’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|CSG Systems International, Inc. (NASDAQ:CSGS)||15||0||4|
|Ebix Inc (NASDAQ:EBIX)||10||0||1|
|Descartes Systems Group (USA) (NASDAQ:DSGX)||2||0||0|
|Perficient, Inc. (NASDAQ:PRFT)||7||2||5|
|Servicesource International Inc (NASDAQ:SREV)||7||1||7|
With the returns exhibited by the aforementioned strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Tangoe Inc (NASDAQ:TNGO) is an important part of this process.