Tibco Software Inc. (NASDAQ:TIBX) was in 30 hedge funds’ portfolio at the end of March. TIBX shareholders have witnessed an increase in activity from the world’s largest hedge funds of late. There were 29 hedge funds in our database with TIBX positions at the end of the previous quarter.
In the financial world, there are tons of metrics market participants can use to watch Mr. Market. A pair of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can outclass their index-focused peers by a healthy margin (see just how much).
Equally as important, positive insider trading activity is another way to parse down the financial markets. Obviously, there are many reasons for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).
With all of this in mind, we’re going to take a gander at the recent action encompassing Tibco Software Inc. (NASDAQ:TIBX).
How are hedge funds trading Tibco Software Inc. (NASDAQ:TIBX)?
Heading into Q2, a total of 30 of the hedge funds we track held long positions in this stock, a change of 3% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes significantly.
When looking at the hedgies we track, Panayotis Takis Sparaggis’s Alkeon Capital Management had the most valuable position in Tibco Software Inc. (NASDAQ:TIBX), worth close to $59.9 million, accounting for 1.3% of its total 13F portfolio. On Alkeon Capital Management’s heels is Jim Simons of Renaissance Technologies, with a $40 million position; 0.1% of its 13F portfolio is allocated to the company. Other peers that are bullish include Glenn J. Krevlin’s Glenhill Advisors, Ken Griffin’s Citadel Investment Group and Rob Citrone’s Discovery Capital Management.
As aggregate interest increased, key money managers were breaking ground themselves. Glenhill Advisors, managed by Glenn J. Krevlin, established the most valuable position in Tibco Software Inc. (NASDAQ:TIBX). Glenhill Advisors had 38.1 million invested in the company at the end of the quarter. Rob Citrone’s Discovery Capital Management also initiated a $27.3 million position during the quarter. The other funds with new positions in the stock are Dan Loeb’s Third Point, Michael R. Weisberg’s Crestwood Capital Management, and Anand Parekh’s Alyeska Investment Group.
How are insiders trading Tibco Software Inc. (NASDAQ:TIBX)?
Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, Tibco Software Inc. (NASDAQ:TIBX) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Tibco Software Inc. (NASDAQ:TIBX). These stocks are SS and C Technologies Holdings Inc (NASDAQ:SSNC), Solera Holdings Inc (NYSE:SLH), Jack Henry & Associates, Inc. (NASDAQ:JKHY), Informatica Corporation (NASDAQ:INFA), and Aspen Technology, Inc. (NASDAQ:AZPN). All of these stocks are in the business software & services industry and their market caps resemble TIBX’s market cap.