NetSuite Inc (NYSE:N) was in 17 hedge funds' portfolio at the end of March. N investors should be aware of an increase in activity from the world's largest hedge funds in recent months. There were 15 hedge funds in our database with N positions at the end of the previous quarter.
To the average investor, there are many methods market participants can use to watch Mr. Market. Two 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 hedge fund managers can outpace their index-focused peers by a superb amount (see just how much).
Equally as beneficial, optimistic insider trading sentiment is a second way to parse down the world of equities. Obviously, there are plenty of incentives for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this strategy if investors understand what to do (learn more here).
Now, let's take a peek at the key action regarding NetSuite Inc (NYSE:N).
Heading into Q2, a total of 17 of the hedge funds we track held long positions in this stock, a change of 13% from one quarter earlier. With the smart money's capital changing hands, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes meaningfully.
According to our comprehensive database, Donald Chiboucis's Columbus Circle Investors had the biggest position in NetSuite Inc (NYSE:N), worth close to $54.7 million, accounting for 0.4% of its total 13F portfolio. Coming in second is Cupps Capital Management, managed by Drew Cupps, which held a $38.5 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Christopher Lord's Criterion Capital, Ken Griffin's Citadel Investment Group and SAC Subsidiary's CR Intrinsic Investors.
Now, key hedge funds were leading the bulls' herd. Conatus Capital Management, managed by David Stemerman, initiated the most outsized position in NetSuite Inc (NYSE:N). Conatus Capital Management had 18.5 million invested in the company at the end of the quarter. Daniel Benton's Andor Capital Management also made a $12 million investment in the stock during the quarter. The other funds with new positions in the stock are Joe DiMenna's ZWEIG DIMENNA PARTNERS and SAC Subsidiary's Sigma Capital Management.
Insider purchases made by high-level executives is best served when the company we're looking at has seen transactions within the past 180 days. Over the last six-month time period, NetSuite Inc (NYSE:N) has experienced zero unique insiders buying, and 11 insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to NetSuite Inc (NYSE:N). These stocks are Jack Henry & Associates, Inc. (NASDAQ:JKHY), Solera Holdings Inc (NYSE:SLH), Total System Services, Inc. (NYSE:TSS), Iron Mountain Incorporated (NYSE:IRM), and Amdocs Limited (NYSE:DOX). This group of stocks are the members of the business software & services industry and their market caps resemble N's market cap.