Responsys Inc (NASDAQ:MKTG) was in 11 hedge funds' portfolio at the end of December. MKTG has experienced a decrease in activity from the world's largest hedge funds recently. There were 14 hedge funds in our database with MKTG positions at the end of the previous quarter.
To the average investor, there are plenty of metrics market participants can use to track stocks. A pair of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can outperform the broader indices by a solid margin (see just how much).
Just as beneficial, bullish insider trading activity is a second way to parse down the marketplace. Obviously, there are a variety of incentives for an executive to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this tactic if "monkeys" understand where to look (learn more here).
Now, it's important to take a gander at the recent action regarding Responsys Inc (NASDAQ:MKTG).
At the end of the fourth quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of -21% from the previous quarter. With the smart money's capital changing hands, there exists an "upper tier" of key hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, Dmitry Balyasny's Balyasny Asset Management had the most valuable position in Responsys Inc (NASDAQ:MKTG), worth close to $6 million, comprising 0.1% of its total 13F portfolio. On Balyasny Asset Management's heels is Crosslink Capital, managed by Seymour Sy Kaufman and Michael Stark, which held a $5 million position; 0% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include Israel Englander's Millennium Management, Ian P. Murray's Lanexa Global Management and Chuck Royce's Royce & Associates.
Judging by the fact that Responsys Inc (NASDAQ:MKTG) has faced a declination in interest from hedge fund managers, it's safe to say that there was a specific group of money managers who were dropping their positions entirely heading into 2013. At the top of the heap, Charles Clough's Clough Capital Partners said goodbye to the largest stake of the 450+ funds we monitor, valued at about $8 million in stock.. Scott Fine and Peter Richards's fund, Empire Capital Management, also dropped its stock, about $8 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 3 funds heading into 2013.
Bullish insider trading is best served when the company in question has seen transactions within the past six months. Over the last 180-day time period, Responsys Inc (NASDAQ:MKTG) has experienced 1 unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let's also examine hedge fund and insider activity in other stocks similar to Responsys Inc (NASDAQ:MKTG). These stocks are SeaChange International (NASDAQ:SEAC), Qualys Inc (NASDAQ:QLYS), LogMeIn Inc (NASDAQ:LOGM), NQ Mobile Inc (ADR) (NYSE:NQ), and Incontact Inc (NASDAQ:SAAS). This group of stocks are in the application software industry and their market caps resemble MKTG's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|SeaChange International (NASDAQ:SEAC)||16||1||1|
|Qualys Inc (NASDAQ:QLYS)||5||0||0|
|LogMeIn Inc (NASDAQ:LOGM)||12||2||1|
|NQ Mobile Inc (ADR) (NYSE:NQ)||7||0||0|
|Incontact Inc (NASDAQ:SAAS)||6||0||4|
With the returns demonstrated by Insider Monkey's time-tested strategies, everyday investors should always pay attention to hedge fund and insider trading activity, and Responsys Inc (NASDAQ:MKTG) is no exception.