Amdocs Limited (NYSE:DOX) was in 21 hedge funds’ portfolio at the end of March. DOX investors should be aware of an increase in activity from the world’s largest hedge funds in recent months. There were 18 hedge funds in our database with DOX holdings at the end of the previous quarter.
Just as integral, optimistic insider trading activity is another way to parse down the financial markets. There are a variety of incentives for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).
Keeping this in mind, let’s take a peek at the key action surrounding Amdocs Limited (NYSE:DOX).
What have hedge funds been doing with Amdocs Limited (NYSE:DOX)?
Heading into Q2, a total of 21 of the hedge funds we track were bullish in this stock, a change of 17% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.
Of the funds we track, Generation Investment Management, managed by David Blood and Al Gore, holds the biggest position in Amdocs Limited (NYSE:DOX). Generation Investment Management has a $91.5 million position in the stock, comprising 1.9% of its 13F portfolio. Sitting at the No. 2 spot is Eric Bannasch of Cadian Capital, with a $82.1 million position; 2.3% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include Charles de Vaulx’s International Value Advisers, Ken Griffin’s Citadel Investment Group and David Cohen and Harold Levy’s Iridian Asset Management.
As aggregate interest increased, some big names were leading the bulls’ herd. International Value Advisers, managed by Charles de Vaulx, established the biggest position in Amdocs Limited (NYSE:DOX). International Value Advisers had 68.7 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also made a $13.4 million investment in the stock during the quarter. The following funds were also among the new DOX investors: Joel Greenblatt’s Gotham Asset Management, Matthew Tewksbury’s Stevens Capital Management, and Jim Simons’s Renaissance Technologies.
What do corporate executives and insiders think about Amdocs Limited (NYSE:DOX)?
Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the latest six-month time period, Amdocs Limited (NYSE:DOX) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Amdocs Limited (NYSE:DOX). These stocks are Jack Henry & Associates, Inc. (NASDAQ:JKHY), Solera Holdings Inc (NYSE:SLH), Total System Services, Inc. (NYSE:TSS), Iron Mountain Incorporated (NYSE:IRM), and NetSuite Inc (NYSE:N). All of these stocks are in the business software & services industry and their market caps resemble DOX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Jack Henry & Associates, Inc. (NASDAQ:JKHY) | 10 | 1 | 2 |
| Solera Holdings Inc (NYSE:SLH) | 8 | 0 | 4 |
| Total System Services, Inc. (NYSE:TSS) | 16 | 0 | 10 |
| Iron Mountain Incorporated (NYSE:IRM) | 24 | 0 | 1 |
| NetSuite Inc (NYSE:N) | 17 | 0 | 11 |
With the returns demonstrated by our tactics, retail investors must always monitor hedge fund and insider trading sentiment, and Amdocs Limited (NYSE:DOX) shareholders fit into this picture quite nicely.
