Should You Buy Acme Packet, Inc. (NASDAQ:APKT)?

Acme Packet, Inc. (NASDAQ:APKT) was in 22 hedge funds’ portfolio at the end of December. APKT investors should be aware of an increase in hedge fund interest lately. There were 17 hedge funds in our database with APKT positions at the end of the previous quarter.

The Safest Way to Invest in "the Cloud" and Earn 5% Yields

According to most shareholders, hedge funds are viewed as slow, outdated investment vehicles of years past. While there are more than 8000 funds with their doors open at the moment, we at Insider Monkey look at the aristocrats of this group, about 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total capital, and by paying attention to their top investments, we have come up with a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Equally as beneficial, optimistic insider trading sentiment is a second way to parse down the financial markets. Just as you’d expect, there are many motivations for an upper level exec to get rid of shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if shareholders know what to do (learn more here).

With these “truths” under our belt, it’s important to take a gander at the key action regarding Acme Packet, Inc. (NASDAQ:APKT).

Hedge fund activity in Acme Packet, Inc. (NASDAQ:APKT)

In preparation for this year, a total of 22 of the hedge funds we track were long in this stock, a change of 29% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings substantially.

Of the funds we track, Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, holds the most valuable position in Acme Packet, Inc. (NASDAQ:APKT). Scopia Capital has a $20 million position in the stock, comprising 0.8% of its 13F portfolio. On Scopia Capital’s heels is Spencer M. Waxman of Shannon River Fund Management, with a $17 million position; 2.2% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Paul ReederáandáEdward Shapiro’s PAR Capital Management, and Jim Simons’s Renaissance Technologies.

As aggregate interest increased, key money managers have jumped into Acme Packet, Inc. (NASDAQ:APKT) headfirst. Shannon River Fund Management, managed by Spencer M. Waxman, assembled the most valuable position in Acme Packet, Inc. (NASDAQ:APKT). Shannon River Fund Management had 17 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $11 million investment in the stock during the quarter. The other funds with new positions in the stock are Eric Bannasch’s Cadian Capital, Scott Fine and Peter Richards’s Empire Capital Management, and Richard Driehaus’s Driehaus Capital.

What have insiders been doing with Acme Packet, Inc. (NASDAQ:APKT)?

Insider purchases made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, Acme Packet, Inc. (NASDAQ:APKT) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned research, retail investors must always pay attention to hedge fund and insider trading sentiment, and Acme Packet, Inc. (NASDAQ:APKT) applies perfectly to this mantra.

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!