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Hedge Funds Are Crazy About ServiceNow Inc (NYSE:NOW)

ServiceNow Inc (NYSE:NOW) shareholders have witnessed an increase in support from the world’s most elite money managers lately.

ServiceNow Inc (NYSE:NOW)

In today’s marketplace, there are dozens of gauges market participants can use to watch publicly traded companies. A duo of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can beat the S&P 500 by a very impressive amount (see just how much).

Just as beneficial, optimistic insider trading sentiment is a second way to break down the financial markets. Just as you’d expect, there are a number of reasons for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this tactic if you understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a glance at the latest action regarding ServiceNow Inc (NYSE:NOW).

Hedge fund activity in ServiceNow Inc (NYSE:NOW)

At year’s end, a total of 16 of the hedge funds we track held long positions in this stock, a change of 45% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes significantly.

According to our comprehensive database, Donald Chiboucis’s Columbus Circle Investors had the largest position in ServiceNow Inc (NYSE:NOW), worth close to $63 million, comprising 0.5% of its total 13F portfolio. Sitting at the No. 2 spot is Criterion Capital, managed by Christopher Lord, which held a $41 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management, Christian Leone’s Luxor Capital Group and Steven Cohen’s SAC Capital Advisors.

Now, specific money managers have jumped into ServiceNow Inc (NYSE:NOW) headfirst. Alkeon Capital Management, managed by Panayotis æTakisÆ Sparaggis, established the largest position in ServiceNow Inc (NYSE:NOW). Alkeon Capital Management had 23 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $9 million position during the quarter. The other funds with brand new NOW positions are Scott Fine and Peter Richards’s Empire Capital Management, D. E. Shaw’s D E Shaw, and Brian Ashford-Russell and Tim Woolley’s Polar Capital.

How are insiders trading ServiceNow Inc (NYSE:NOW)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past six months. Over the last 180-day time frame, ServiceNow Inc (NYSE:NOW) has seen zero unique insiders buying, and 11 insider sales (see the details of insider trades here).

With the returns exhibited by Insider Monkey’s strategies, everyday investors should always watch hedge fund and insider trading activity, and ServiceNow Inc (NYSE:NOW) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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