Is SS and C Technologies Holdings Inc (NASDAQ:SSNC) the right pick for your portfolio? Investors who are in the know are in a bearish mood. The number of long hedge fund bets went down by 1 lately.
At the moment, there are a multitude of methods market participants can use to monitor Mr. Market. A pair of the most innovative 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 trounce the S&P 500 by a very impressive margin (see just how much).
Just as key, bullish insider trading activity is a second way to parse down the investments you're interested in. Obviously, there are plenty of motivations for a bullish insider to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this strategy if "monkeys" understand what to do (learn more here).
Now, let's take a look at the key action encompassing SS and C Technologies Holdings Inc (NASDAQ:SSNC).
Heading into Q2, a total of 5 of the hedge funds we track were long in this stock, a change of -17% from the first quarter. With hedge funds' capital changing hands, there exists an "upper tier" of notable hedge fund managers who were increasing their holdings meaningfully.
According to our comprehensive database, AQR Capital Management, managed by Cliff Asness, holds the most valuable position in SS and C Technologies Holdings Inc (NASDAQ:SSNC). AQR Capital Management has a $2.9 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On AQR Capital Management's heels is D E Shaw, managed by D. E. Shaw, which held a $1.9 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include Brian Taylor's Pine River Capital Management, Neil Chriss's Hutchin Hill Capital and Alec Litowitz and Ross Laser's Magnetar Capital.
Since SS and C Technologies Holdings Inc (NASDAQ:SSNC) has witnessed a declination in interest from hedge fund managers, logic holds that there was a specific group of funds who were dropping their full holdings heading into Q2. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital dropped the largest stake of the "upper crust" of funds we key on, valued at about $1.2 million in stock.. Paul Tudor Jones's fund, Tudor Investment Corp, also cut its stock, about $0.4 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 1 funds heading into Q2.
Insider buying is at its handiest when the company in focus has experienced transactions within the past six months. Over the last six-month time period, SS and C Technologies Holdings Inc (NASDAQ:SSNC) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let's also review hedge fund and insider activity in other stocks similar to SS and C Technologies Holdings Inc (NASDAQ:SSNC). These stocks are Convergys Corporation (NYSE:CVG), Aspen Technology, Inc. (NASDAQ:AZPN), Verint Systems Inc. (NASDAQ:VRNT), Guidewire Software Inc (NYSE:GWRE), and Qlik Technologies Inc (NASDAQ:QLIK). This group of stocks belong to the business software & services industry and their market caps are similar to SSNC's market cap.