Hedge Funds Aren’t Crazy About Compuware Corporation (NASDAQ:CPWR) Anymore

Is Compuware Corporation (NASDAQ:CPWR) a healthy stock for your portfolio? Prominent investors are turning less bullish. The number of long hedge fund positions were trimmed by 3 in recent months.

Compuware Corporation (NASDAQ:CPWR)

To the average investor, there are a multitude of gauges investors can use to analyze their holdings. Two of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the market by a superb margin (see just how much).

Just as beneficial, positive insider trading sentiment is another way to parse down the world of equities. As the old adage goes: there are many motivations for an insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if you understand what to do (learn more here).

Now, it’s important to take a look at the key action surrounding Compuware Corporation (NASDAQ:CPWR).

What have hedge funds been doing with Compuware Corporation (NASDAQ:CPWR)?

In preparation for this year, a total of 19 of the hedge funds we track held long positions in this stock, a change of -14% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.

According to our comprehensive database, Paul Singer’s Elliott Management had the most valuable position in Compuware Corporation (NASDAQ:CPWR), worth close to $131 million, accounting for 4% of its total 13F portfolio. On Elliott Management’s heels is Jeffrey Smith of Starboard Value LP, with a $76 million position; 0.8% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Jonathon Jacobson’s Highfields Capital Management, Tom Sandell’s Sandell Asset Management and John Osterweis’s Osterweis Capital Management.

Seeing as Compuware Corporation (NASDAQ:CPWR) has experienced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of hedge funds who sold off their full holdings heading into 2013. At the top of the heap, Michael Kaufman’s MAK Capital One dumped the largest investment of all the hedgies we track, valued at close to $42 million in stock., and Anand Parekh of Alyeska Investment Group was right behind this move, as the fund said goodbye to about $13 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 3 funds heading into 2013.

Insider trading activity in Compuware Corporation (NASDAQ:CPWR)

Bullish insider trading is best served when the company we’re looking at has seen transactions within the past six months. Over the last half-year time period, Compuware Corporation (NASDAQ:CPWR) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the returns exhibited by our tactics, everyday investors must always pay attention to hedge fund and insider trading activity, and Compuware Corporation (NASDAQ:CPWR) is no exception.

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.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!