Insight Enterprises, Inc. (NASDAQ:NSIT) has seen an increase in hedge fund interest lately.
In today’s marketplace, there are tons of methods shareholders can use to analyze Mr. Market. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform their index-focused peers by a solid amount (see just how much).
Equally as integral, optimistic insider trading sentiment is another way to break down the investments you’re interested in. Obviously, there are many reasons for an insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this tactic if you understand where to look (learn more here).
Consequently, we’re going to take a look at the key action surrounding Insight Enterprises, Inc. (NASDAQ:NSIT).
How are hedge funds trading Insight Enterprises, Inc. (NASDAQ:NSIT)?
At the end of the fourth quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 9% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies we track, Richard S. Pzena’s Pzena Investment Management had the biggest position in Insight Enterprises, Inc. (NASDAQ:NSIT), worth close to $28 million, accounting for 0.2% of its total 13F portfolio. On Pzena Investment Management’s heels is Cliff Asness of AQR Capital Management, with a $14 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Joel Greenblatt’s Gotham Asset Management, Andy Redleaf’s Whitebox Advisors and Ken Griffin’s Citadel Investment Group.
Consequently, specific money managers have jumped into Insight Enterprises, Inc. (NASDAQ:NSIT) headfirst. Q Investments (Specter Holdings), managed by Geoffrey Raynor, initiated the most outsized position in Insight Enterprises, Inc. (NASDAQ:NSIT). Q Investments (Specter Holdings) had 1 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $0 million investment in the stock during the quarter. The only other fund with a brand new NSIT position is Neil Chriss’s Hutchin Hill Capital.
How have insiders been trading Insight Enterprises, Inc. (NASDAQ:NSIT)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has seen transactions within the past half-year. Over the latest six-month time frame, Insight Enterprises, Inc. (NASDAQ:NSIT) has experienced zero unique insiders buying, and 9 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Insight Enterprises, Inc. (NASDAQ:NSIT). These stocks are Lifelock Inc (NYSE:LOCK), FleetMatics Group PLC (NYSE:FLTX), Jive Software Inc (NASDAQ:JIVE), Monotype Imaging Holdings Inc. (NASDAQ:TYPE), and Imperva Inc (NYSE:IMPV). All of these stocks are in the application software industry and their market caps are similar to NSIT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Lifelock Inc (NYSE:LOCK)||9||1||2|
|FleetMatics Group PLC (NYSE:FLTX)||2||0||0|
|Jive Software Inc (NASDAQ:JIVE)||10||0||5|
|Monotype Imaging Holdings Inc. (NASDAQ:TYPE)||8||0||8|
|Imperva Inc (NYSE:IMPV)||8||0||11|
With the results shown by our time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading activity, and Insight Enterprises, Inc. (NASDAQ:NSIT) is an important part of this process.
Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.