Syntel, Inc. (SYNT): Insiders Are Dumping, Should You?

Page 1 of 2

Is Syntel, Inc. (NASDAQ:SYNT) a healthy stock for your portfolio? Hedge funds are taking a pessimistic view. The number of bullish hedge fund positions dropped by 1 lately.

Syntel, Inc. (NASDAQ:SYNT)

According to most stock holders, hedge funds are perceived as worthless, outdated investment tools of the past. While there are more than 8000 funds trading at the moment, we at Insider Monkey look at the elite of this group, about 450 funds. It is widely believed that this group controls the majority of the smart money’s total asset base, and by keeping an eye on their best equity investments, we have figured out a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).

Equally as beneficial, bullish insider trading activity is another way to parse down the world of equities. There are many incentives for an executive to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this strategy if you understand where to look (learn more here).

Keeping this in mind, let’s take a glance at the key action encompassing Syntel, Inc. (NASDAQ:SYNT).

What have hedge funds been doing with Syntel, Inc. (NASDAQ:SYNT)?

At year’s end, a total of 8 of the hedge funds we track were long in this stock, a change of -11% from the third quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings considerably.

When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the largest position in Syntel, Inc. (NASDAQ:SYNT). Renaissance Technologies has a $21.2 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $19 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Israel Englander’s Millennium Management, Joel Greenblatt’s Gotham Asset Management and Mike Vranos’s Ellington.

Because Syntel, Inc. (NASDAQ:SYNT) has experienced declining sentiment from the smart money, logic holds that there is a sect of money managers who sold off their positions entirely last quarter. Interestingly, Richard Driehaus’s Driehaus Capital sold off the biggest position of the “upper crust” of funds we track, valued at an estimated $3.8 million in stock.. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $0.6 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds last quarter.

What have insiders been doing with Syntel, Inc. (NASDAQ:SYNT)?

Insider buying is best served when the company in question has seen transactions within the past 180 days. Over the last half-year time frame, Syntel, Inc. (NASDAQ:SYNT) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Syntel, Inc. (NASDAQ:SYNT). These stocks are Rackspace Hosting, Inc. (NYSE:RAX), Gartner Inc (NYSE:IT), Acxiom Corporation (NASDAQ:ACXM), ServiceNow Inc (NYSE:NOW), and NCR Corporation (NYSE:NCR). This group of stocks are in the information technology services industry and their market caps resemble SYNT’s market cap.

Page 1 of 2
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 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

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!