Ellie Mae Inc (NYSE:ELLI) was in 17 hedge funds' portfolio at the end of March. ELLI investors should be aware of an increase in hedge fund interest recently. There were 13 hedge funds in our database with ELLI holdings at the end of the previous quarter.
In the financial world, there are tons of metrics investors can use to track publicly traded companies. A duo of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can beat their index-focused peers by a significant amount (see just how much).
Just as key, optimistic insider trading sentiment is a second way to parse down the marketplace. Obviously, there are a variety of reasons for an insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if piggybackers know what to do (learn more here).
Consequently, it's important to take a gander at the latest action encompassing Ellie Mae Inc (NYSE:ELLI).
At the end of the first quarter, a total of 17 of the hedge funds we track held long positions in this stock, a change of 31% from one quarter earlier. With hedgies' capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were upping their holdings meaningfully.
Of the funds we track, Brett Barakett's Tremblant Capital had the biggest position in Ellie Mae Inc (NYSE:ELLI), worth close to $30.3 million, comprising 1.4% of its total 13F portfolio. Sitting at the No. 2 spot is ZWEIG DIMENNA PARTNERS, managed by Joe DiMenna, which held a $25.9 million position; 1.2% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Jim Simons's Renaissance Technologies, Philip Hempleman's Ardsley Partners and Joseph A. Jolson's Harvest Capital Strategies.
With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Tremblant Capital, managed by Brett Barakett, established the largest position in Ellie Mae Inc (NYSE:ELLI). Tremblant Capital had 30.3 million invested in the company at the end of the quarter. Scott Burney's Bluefin Investment Management also made a $5.2 million investment in the stock during the quarter. The following funds were also among the new ELLI investors: Philip Hempleman's Ardsley Partners, SAC Subsidiary's Sigma Capital Management, and Israel Englander's Millennium Management.
Bullish insider trading is best served when the primary stock in question has seen transactions within the past six months. Over the last half-year time period, Ellie Mae Inc (NYSE:ELLI) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
Let's also examine hedge fund and insider activity in other stocks similar to Ellie Mae Inc (NYSE:ELLI). These stocks are BroadSoft Inc (NASDAQ:BSFT), SciQuest, Inc. (NASDAQ:SQI), Accelrys, Inc. (NASDAQ:ACCL), Proofpoint Inc (NASDAQ:PFPT), and SPS Commerce, Inc. (NASDAQ:SPSC). This group of stocks are in the application software industry and their market caps are similar to ELLI's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|BroadSoft Inc (NASDAQ:BSFT)||12||2||3|
|SciQuest, Inc. (NASDAQ:SQI)||7||0||2|
|Accelrys, Inc. (NASDAQ:ACCL)||9||0||4|
|Proofpoint Inc (NASDAQ:PFPT)||9||0||8|
|SPS Commerce, Inc. (NASDAQ:SPSC)||5||0||6|
With the results exhibited by our time-tested strategies, everyday investors must always monitor hedge fund and insider trading sentiment, and Ellie Mae Inc (NYSE:ELLI) shareholders fit into this picture quite nicely.