Allot Communications Ltd. (NASDAQ:ALLT) was in 12 hedge funds’ portfolio at the end of the first quarter of 2013. ALLT has experienced a decrease in activity from the world’s largest hedge funds of late. There were 13 hedge funds in our database with ALLT holdings at the end of the previous quarter.
In the financial world, there are plenty of methods market participants can use to watch their holdings. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can trounce their index-focused peers by a solid margin (see just how much).
Equally as key, bullish insider trading sentiment is another way to parse down the financial markets. There are lots of motivations for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the valuable potential of this strategy if “monkeys” know what to do (learn more here).
With these “truths” under our belt, let’s take a peek at the latest action surrounding Allot Communications Ltd. (NASDAQ:ALLT).
What have hedge funds been doing with Allot Communications Ltd. (NASDAQ:ALLT)?
At the end of the first quarter, a total of 12 of the hedge funds we track were long in this stock, a change of -8% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes substantially.
According to our comprehensive database, Alydar Capital, managed by John Murphy, holds the biggest position in Allot Communications Ltd. (NASDAQ:ALLT). Alydar Capital has a $23.3 million position in the stock, comprising 1.5% of its 13F portfolio. Coming in second is Diker Management, managed by Mark N. Diker, which held a $10.9 million position; 3% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Brian Ashford-Russell and Tim Woolley’s Polar Capital, Jim Simons’s Renaissance Technologies and Ken Griffin’s Citadel Investment Group.
Seeing as Allot Communications Ltd. (NASDAQ:ALLT) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there were a few money managers that decided to sell off their positions entirely at the end of the first quarter. Interestingly, Donald Chiboucis’s Columbus Circle Investors cut the biggest position of the 450+ funds we monitor, comprising about $13.4 million in stock.. Israel Englander’s fund, Millennium Management, also dropped its stock, about $3 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 1 funds at the end of the first quarter.
How have insiders been trading Allot Communications Ltd. (NASDAQ:ALLT)?
Insider buying is best served when the company in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Allot Communications Ltd. (NASDAQ:ALLT) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Allot Communications Ltd. (NASDAQ:ALLT). These stocks are Exfo Inc (NASDAQ:EXFO), Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), Comtech Telecomm. Corp. (NASDAQ:CMTL), Calix Inc (NYSE:CALX), and CalAmp Corp. (NASDAQ:CAMP). This group of stocks are in the communication equipment industry and their market caps resemble ALLT’s market cap.