Inteliquent (NASDAQ:IQNT) was in 10 hedge funds’ portfolio at the end of the first quarter of 2013. IQNT investors should pay attention to a decrease in support from the world’s most elite money managers in recent months. There were 11 hedge funds in our database with IQNT holdings at the end of the previous quarter.
In the eyes of most market participants, hedge funds are assumed to be unimportant, outdated financial tools of yesteryear. While there are over 8000 funds trading at present, we hone in on the aristocrats of this club, around 450 funds. It is widely believed that this group has its hands on the lion’s share of all hedge funds’ total capital, and by keeping an eye on their top picks, we have found a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Just as integral, positive insider trading sentiment is another way to parse down the stock market universe. Obviously, there are lots of motivations for an upper level exec to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this method if shareholders know where to look (learn more here).
Keeping this in mind, we’re going to take a peek at the recent action encompassing Inteliquent (NASDAQ:IQNT).
What have hedge funds been doing with Inteliquent (NASDAQ:IQNT)?
Heading into Q2, a total of 10 of the hedge funds we track were long in this stock, a change of -9% from the first quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes meaningfully.
Due to the fact that Inteliquent (NASDAQ:IQNT) has experienced a declination in interest from the entirety of the hedge funds we track, we can see that there were a few hedgies who were dropping their positions entirely at the end of the first quarter. Interestingly, Chuck Royce’s Royce & Associates dropped the biggest stake of the 450+ funds we track, totaling about $1.7 million in stock., and Paul Tudor Jones of Tudor Investment Corp was right behind this move, as the fund sold off about $0.6 million worth. These transactions are important to note, as total hedge fund interest fell by 1 funds at the end of the first quarter.
Insider trading activity in Inteliquent (NASDAQ:IQNT)
Insider buying is most useful when the company in question has seen transactions within the past half-year. Over the latest six-month time period, Inteliquent (NASDAQ:IQNT) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Inteliquent (NASDAQ:IQNT). These stocks are Anaren, Inc. (NASDAQ:ANEN), Telular Corporation (NASDAQ:WRLS), Meru Networks, Inc. (NASDAQ:MERU), Linktone Ltd. (ADR) (NASDAQ:LTON), and Globalstar, Inc. (PINK:GSAT). This group of stocks are in the wireless communications industry and their market caps resemble IQNT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Anaren, Inc. (NASDAQ:ANEN) | 7 | 0 | 1 |
| Telular Corporation (NASDAQ:WRLS) | 6 | 0 | 7 |
| Meru Networks, Inc. (NASDAQ:MERU) | 7 | 5 | 0 |
| Linktone Ltd. (ADR) (NASDAQ:LTON) | 1 | 0 | 0 |
| Globalstar, Inc. (PINK:GSAT) | 5 | 0 | 0 |
With the returns shown by the aforementioned strategies, retail investors must always pay attention to hedge fund and insider trading activity, and Inteliquent (NASDAQ:IQNT) shareholders fit into this picture quite nicely.
