Guidewire Software Inc (NYSE:GWRE) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. GWRE investors should be aware of a decrease in activity from the world’s largest hedge funds lately. There were 9 hedge funds in our database with GWRE holdings at the end of the previous quarter.
To the average investor, there are dozens of indicators market participants can use to monitor Mr. Market. A duo of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the broader indices by a healthy amount (see just how much).
Equally as beneficial, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are a number of reasons for an insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).
With all of this in mind, it’s important to take a gander at the latest action surrounding Guidewire Software Inc (NYSE:GWRE).
What have hedge funds been doing with Guidewire Software Inc (NYSE:GWRE)?
At year’s end, a total of 9 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies we track, Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management had the largest position in Guidewire Software Inc (NYSE:GWRE), worth close to $21.6 million, accounting for 0.6% of its total 13F portfolio. On Alkeon Capital Management’s heels is Matthew Iorio of White Elm Capital, with a $15.3 million position; the fund has 3.1% of its 13F portfolio invested in the stock. Other peers with similar optimism include Richard Driehaus’s Driehaus Capital, Drew Cupps’s Cupps Capital Management and Glenn Russell Dubin’s Highbridge Capital Management.
Judging by the fact that Guidewire Software Inc (NYSE:GWRE) has experienced a declination in interest from the smart money, it’s safe to say that there lies a certain “tier” of fund managers that slashed their positions entirely last quarter. Interestingly, D. E. Shaw’s D E Shaw said goodbye to the biggest position of the 450+ funds we monitor, totaling about $1.8 million in stock., and Donald Chiboucis of Columbus Circle Investors was right behind this move, as the fund cut about $1.7 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Guidewire Software Inc (NYSE:GWRE)?
Insider buying is best served when the company in focus has seen transactions within the past six months. Over the latest six-month time period, Guidewire Software Inc (NYSE:GWRE) has experienced 1 unique insiders purchasing, and 10 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Guidewire Software Inc (NYSE:GWRE). These stocks are Sapient Corporation (NASDAQ:SAPE), Convergys Corporation (NYSE:CVG), Verint Systems Inc. (NASDAQ:VRNT), SS and C Technologies Holdings Inc (NASDAQ:SSNC), and Qlik Technologies Inc (NASDAQ:QLIK). All of these stocks are in the business software & services industry and their market caps are closest to GWRE’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Sapient Corporation (NASDAQ:SAPE)||16||0||6|
|Convergys Corporation (NYSE:CVG)||11||0||1|
|Verint Systems Inc. (NASDAQ:VRNT)||18||0||4|
|SS and C Technologies Holdings Inc (NASDAQ:SSNC)||6||0||4|
|Qlik Technologies Inc (NASDAQ:QLIK)||18||0||6|
With the results exhibited by Insider Monkey’s time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Guidewire Software Inc (NYSE:GWRE) is no exception.