Wipro Limited (ADR) (NYSE:WIT) was in 6 hedge funds' portfolio at the end of December. WIT has seen an increase in activity from the world's largest hedge funds recently. There were 5 hedge funds in our database with WIT positions at the end of the previous quarter.
To most stock holders, hedge funds are perceived as worthless, old investment vehicles of yesteryear. While there are greater than 8000 funds trading today, we at Insider Monkey hone in on the top tier of this group, around 450 funds. Most estimates calculate that this group controls the majority of the hedge fund industry's total asset base, and by paying attention to their highest performing equity investments, we have spotted a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per 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 25 percentage points in 6.5 month (see all of our picks from August).
Equally as beneficial, bullish insider trading sentiment is another way to break down the world of equities. Just as you'd expect, there are a variety of reasons for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this tactic if shareholders know where to look (learn more here).
Keeping this in mind, let's take a look at the key action surrounding Wipro Limited (ADR) (NYSE:WIT).
In preparation for this year, a total of 6 of the hedge funds we track held long positions in this stock, a change of 20% from the third quarter. With hedgies' capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Cliff Asness's AQR Capital Management had the most valuable position in Wipro Limited (ADR) (NYSE:WIT), worth close to $2 million, accounting for 0% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $1 million position; 0% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include D. E. Shaw's D E Shaw, Thomas Bailard's Bailard Inc and Sander Gerber's Hudson Bay Capital Management.
As one would reasonably expect, some big names have jumped into Wipro Limited (ADR) (NYSE:WIT) headfirst. Hudson Bay Capital Management, managed by Sander Gerber, initiated the most outsized position in Wipro Limited (ADR) (NYSE:WIT). Hudson Bay Capital Management had 0 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also made a $0 million investment in the stock during the quarter.
Insider buying is particularly usable when the company in focus has experienced transactions within the past half-year. Over the last half-year time frame, Wipro Limited (ADR) (NYSE:WIT) has seen zero insider buying, and zero insider sales (see the details of insider trades here).
Let's also take a look at hedge fund and insider activity in other stocks similar to Wipro Limited (ADR) (NYSE:WIT):
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Gartner Inc (NYSE:IT)||10||0||8|
|Rackspace Hosting, Inc. (NYSE:RAX)||13||0||14|
|Computer Sciences Corporation (NYSE:CSC)||24||0||1|
|Xerox Corporation (NYSE:XRX)||34||0||3|
|Accenture Plc (NYSE:ACN)||23||0||10|
With the returns shown by the aforementioned strategies, retail investors must always monitor hedge fund and insider trading activity, and Wipro Limited (ADR) (NYSE:WIT) is no exception.
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