Jack Henry & Associates, Inc. (NASDAQ:JKHY) was in 13 hedge funds’ portfolio at the end of December. JKHY has experienced an increase in activity from the world’s largest hedge funds of late. There were 10 hedge funds in our database with JKHY holdings at the end of the previous quarter.
To the average investor, there are plenty of metrics shareholders can use to analyze publicly traded companies. Two of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can beat the S&P 500 by a very impressive margin (see just how much).
Equally as beneficial, positive insider trading sentiment is another way to break down the marketplace. There are plenty of incentives for an executive to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this method if you know where to look (learn more here).
Consequently, let’s take a glance at the key action encompassing Jack Henry & Associates, Inc. (NASDAQ:JKHY).
Hedge fund activity in Jack Henry & Associates, Inc. (NASDAQ:JKHY)
Heading into 2013, a total of 13 of the hedge funds we track were long in this stock, a change of 30% from the third quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings substantially.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in Jack Henry & Associates, Inc. (NASDAQ:JKHY). Royce & Associates has a $73 million position in the stock, comprising 0.2% of its 13F portfolio. On Royce & Associates’s heels is Ken Griffin of Citadel Investment Group, with a $26 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Jim Simons’s Renaissance Technologies, D. E. Shaw’s D E Shaw and Steven Richman’s East Side Capital (RR Partners).
Now, key money managers have jumped into Jack Henry & Associates, Inc. (NASDAQ:JKHY) headfirst. East Side Capital (RR Partners), managed by Steven Richman, established the largest position in Jack Henry & Associates, Inc. (NASDAQ:JKHY). East Side Capital (RR Partners) had 6 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $1 million position during the quarter. The following funds were also among the new JKHY investors: John Overdeck and David Siegel’s Two Sigma Advisors and Ken Gray and Steve Walsh’s Bryn Mawr Capital.
Insider trading activity in Jack Henry & Associates, Inc. (NASDAQ:JKHY)
Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the latest six-month time frame, Jack Henry & Associates, Inc. (NASDAQ:JKHY) has seen 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Jack Henry & Associates, Inc. (NASDAQ:JKHY). These stocks are Aspen Technology, Inc. (NASDAQ:AZPN), Tibco Software Inc. (NASDAQ:TIBX), Total System Services, Inc. (NYSE:TSS), Informatica Corporation (NASDAQ:INFA), and Solera Holdings Inc (NYSE:SLH). This group of stocks are in the business software & services industry and their market caps resemble JKHY’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Aspen Technology, Inc. (NASDAQ:AZPN)||15||0||9|
|Tibco Software Inc. (NASDAQ:TIBX)||27||0||8|
|Total System Services, Inc. (NYSE:TSS)||16||0||9|
|Informatica Corporation (NASDAQ:INFA)||27||5||7|
|Solera Holdings Inc (NYSE:SLH)||6||0||4|
With the results shown by our research, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Jack Henry & Associates, Inc. (NASDAQ:JKHY) is no exception.