To many of your fellow readers, hedge funds are seen as useless, outdated financial tools of a forgotten age. Although there are more than 8,000 hedge funds in operation currently, Insider Monkey aim at the leaders of this club, about 525 funds. It is widely held that this group controls the lion’s share of all hedge funds’ total assets, and by monitoring their best investments, we’ve spotted a number of investment strategies that have historically outperformed 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 outperformed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Just as necessary, optimistic insider trading sentiment is another way to analyze the stock market universe. Just as you’d expect, there are plenty of reasons for an insider to drop shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this strategy if you know where to look (learn more here).
Keeping this in mind, it’s important to analyze the latest info for Genpact Limited (NYSE:G).
How have hedgies been trading Genpact Limited (NYSE:G)?
At the end of the second quarter, a total of 19 of the hedge funds we track were long in this stock, a change of 12% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings substantially.
When using filings from the hedgies we track, Eminence Capital, managed by Ricky Sandler, holds the most valuable position in Genpact Limited (NYSE:G). Eminence Capital has a $175.9 million position in the stock, comprising 4.3% of its 13F portfolio. The second largest stake is held by Emerging Sovereign Group, managed by J Kevin Kenny Jr, which held a $58 million position; 2.4% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Chuck Royce’s Royce & Associates, David Stemerman’s Conatus Capital Management and Alok Agrawal’s Bloom Tree Partners.
Consequently, particular hedge funds were leading the bulls’ herd. Eminence Capital, managed by Ricky Sandler, established the most outsized position in Genpact Limited (NYSE:G). Eminence Capital had 175.9 million invested in the company at the end of the quarter. J Kevin Kenny Jr’s Emerging Sovereign Group also made a $58 million investment in the stock during the quarter. The other funds with new positions in the stock are Chuck Royce’s Royce & Associates, David Stemerman’s Conatus Capital Management, and Alok Agrawal’s Bloom Tree Partners.
How are insiders trading Genpact Limited (NYSE:G)?
Insider buying made by high-level executives is particularly usable when the company in focus has experienced transactions within the past half-year. Over the latest six-month time frame, Genpact Limited (NYSE:G) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Genpact Limited (NYSE:G). These stocks are FTI Consulting, Inc. (NYSE:FCN), Booz Allen Hamilton Holding Corporation (NYSE:BAH), The Corporate Executive Board Company (NYSE:CEB), Towers Watson & Co (NYSE:TW), and Corrections Corp Of America (NYSE:CXW). This group of stocks are the members of the management services industry and their market caps are closest to G’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| FTI Consulting, Inc. (NYSE:FCN) | 13 | 0 | 0 |
| Booz Allen Hamilton Holding Corporation (NYSE:BAH) | 5 | 0 | 0 |
| The Corporate Executive Board Company (NYSE:CEB) | 9 | 0 | 0 |
| Towers Watson & Co (NYSE:TW) | 16 | 0 | 0 |
| Corrections Corp Of America (NYSE:CXW) | 19 | 0 | 0 |
Using the results shown by Insider Monkey’s studies, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Genpact Limited (NYSE:G) applies perfectly to this mantra.
