Is Amdocs Limited (NYSE:DOX) a good investment now? Money managers are getting less bullish. The number of bullish hedge fund positions were cut by 7 lately.
To most stock holders, hedge funds are viewed as unimportant, outdated investment vehicles of the past. While there are more than 8000 funds with their doors open today, we at Insider Monkey look at the leaders of this club, about 450 funds. Most estimates calculate that this group has its hands on the majority of the smart money’s total asset base, and by monitoring their best stock picks, we have found a few investment strategies that have historically outperformed 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 topped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).
Just as integral, positive insider trading sentiment is a second way to break down the investments you’re interested in. Just as you’d expect, there are plenty of incentives for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand what to do (learn more here).
With all of this in mind, it’s important to take a glance at the latest action encompassing Amdocs Limited (NYSE:DOX).
How have hedgies been trading Amdocs Limited (NYSE:DOX)?
At year’s end, a total of 17 of the hedge funds we track were long in this stock, a change of -29% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings substantially.
Due to the fact that Amdocs Limited (NYSE:DOX) has faced bearish sentiment from hedge fund managers, it’s easy to see that there is a sect of funds that elected to cut their entire stakes heading into 2013. At the top of the heap, Mark Travis’s Intrepid Capital Management dropped the biggest investment of the 450+ funds we track, valued at an estimated $25 million in stock.. Chuck Royce’s fund, Royce & Associates, also said goodbye to its stock, about $10 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 7 funds heading into 2013.
What do corporate executives and insiders think about Amdocs Limited (NYSE:DOX)?
Insider buying is best served when the company we’re looking at has seen transactions within the past 180 days. Over the latest 180-day time period, Amdocs Limited (NYSE:DOX) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns demonstrated by the aforementioned strategies, retail investors should always watch hedge fund and insider trading activity, and Amdocs Limited (NYSE:DOX) is no exception.
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