This Metric Says You Are Smart to Sell American Software, Inc. (AMSWA)

Page 1 of 2

American Software, Inc. (NASDAQ:AMSWA) has experienced a decrease in hedge fund interest in recent months.

If you’d ask most shareholders, hedge funds are viewed as unimportant, old financial vehicles of the past. While there are over 8000 funds in operation today, we hone in on the aristocrats of this club, close to 450 funds. Most estimates calculate that this group controls most of the hedge fund industry’s total asset base, and by keeping an eye on their top picks, we have spotted a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year 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 23.3 percentage points in 8 months (see all of our picks from August).

Equally as important, bullish insider trading sentiment is another way to parse down the marketplace. Just as you’d expect, there are lots of incentives for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this strategy if investors know where to look (learn more here).

With all of this in mind, let’s take a glance at the latest action surrounding American Software, Inc. (NASDAQ:AMSWA).

How are hedge funds trading American Software, Inc. (NASDAQ:AMSWA)?

At Q1′s end, a total of 7 of the hedge funds we track were long in this stock, a change of -13% from the first quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings substantially.

American Software, Inc. (NASDAQ:AMSWA)When looking at the hedgies we track, Jim Simons’s Renaissance Technologies had the most valuable position in American Software, Inc. (NASDAQ:AMSWA), worth close to $11.3 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $3.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, John Overdeck and David Siegel’s Two Sigma Advisors and Andy Redleaf’s Whitebox Advisors.

Due to the fact that American Software, Inc. (NASDAQ:AMSWA) has faced a declination in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedgies who sold off their full holdings last quarter. Intriguingly, Cliff Asness’s AQR Capital Management dropped the biggest position of the 450+ funds we key on, comprising an estimated $0.1 million in stock. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds last quarter.

What do corporate executives and insiders think about American Software, Inc. (NASDAQ:AMSWA)?

Insider purchases made by high-level executives is most useful when the company in question has seen transactions within the past 180 days. Over the last 180-day time period, American Software, Inc. (NASDAQ:AMSWA) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to American Software, Inc. (NASDAQ:AMSWA). These stocks are Unwired Planet Inc (NASDAQ:UPIP), QAD Inc. (NASDAQ:QADA), Market Leader Inc (NASDAQ:LEDR), Agilysys, Inc. (NASDAQ:AGYS), and Zix Corporation (NASDAQ:ZIXI). This group of stocks belong to the application software industry and their market caps resemble AMSWA’s market cap.

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!