Hedge Funds Are Betting On Qualys Inc (QLYS)

Qualys Inc (NASDAQ:QLYS) investors should be aware of an increase in hedge fund interest in recent months.

In today’s marketplace, there are a multitude of metrics investors can use to analyze stocks. Two of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outclass the market by a very impressive amount (see just how much).

Just as important, optimistic insider trading activity is another way to parse down the financial markets. As the old adage goes: there are a variety of motivations for an executive to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).

Consequently, let’s take a glance at the key action encompassing Qualys Inc (NASDAQ:QLYS).

What have hedge funds been doing with Qualys Inc (NASDAQ:QLYS)?

Heading into 2013, a total of 5 of the hedge funds we track were long in this stock, a change of 67% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.

According to our comprehensive database, Ken Griffin’s Citadel Investment Group had the most valuable position in Qualys Inc (NASDAQ:QLYS), worth close to $10 million, accounting for less than 0.1%% of its total 13F portfolio. On Citadel Investment Group’s heels is Alkeon Capital Management, managed by Panayotis æTakisÆ Sparaggis, which held a $8.8 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Brian Taylor’s Pine River Capital Management, Richard Driehaus’s Driehaus Capital and Brian Ashford-Russell and Tim Woolley’s Polar Capital.

Now, key money managers were breaking ground themselves. Alkeon Capital Management, managed by Panayotis æTakisÆ Sparaggis, initiated the largest position in Qualys Inc (NASDAQ:QLYS). Alkeon Capital Management had 8.8 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also initiated a $2.6 million position during the quarter. The only other fund with a new position in the stock is Brian Ashford-Russell and Tim Woolley’s Polar Capital.

Insider trading activity in Qualys Inc (NASDAQ:QLYS)

Insider trading activity, especially when it’s bullish, is best served when the company in question has seen transactions within the past six months. Over the latest 180-day time frame, Qualys Inc (NASDAQ:QLYS) has seen zero unique insiders purchasing, and zero 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 Qualys Inc (NASDAQ:QLYS). These stocks are Responsys Inc (NASDAQ:MKTG), Incontact Inc (NASDAQ:SAAS), NQ Mobile Inc (ADR) (NYSE:NQ), ePlus Inc. (NASDAQ:PLUS), and SeaChange International (NASDAQ:SEAC). All of these stocks are in the application software industry and their market caps are closest to QLYS’s market cap.