Is Limelight Networks, Inc. (NASDAQ:LLNW) ready to rally soon? Investors who are in the know are selling. The number of long hedge fund bets fell by 2 recently.
According to most shareholders, hedge funds are perceived as unimportant, old investment vehicles of yesteryear. While there are more than 8000 funds with their doors open at present, we at Insider Monkey look at the elite of this club, around 450 funds. It is widely believed that this group has its hands on most of all hedge funds’ total asset base, and by watching their top stock picks, we have determined a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped 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 (explore the details and some picks here).
Just as integral, bullish insider trading sentiment is another way to parse down the stock market universe. There are many stimuli for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this tactic if piggybackers know where to look (learn more here).
Now, we’re going to take a glance at the latest action regarding Limelight Networks, Inc. (NASDAQ:LLNW).
Hedge fund activity in Limelight Networks, Inc. (NASDAQ:LLNW)
In preparation for this quarter, a total of 5 of the hedge funds we track were bullish in this stock, a change of -29% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially.
Of the funds we track, AQR Capital Management, managed by Cliff Asness, holds the biggest position in Limelight Networks, Inc. (NASDAQ:LLNW). AQR Capital Management has a $2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On AQR Capital Management’s heels is Renaissance Technologies, managed by Jim Simons, which held a $0.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Israel Englander’s Millennium Management, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Griffin’s Citadel Investment Group.
Seeing as Limelight Networks, Inc. (NASDAQ:LLNW) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of funds that decided to sell off their entire stakes last quarter. At the top of the heap, Ian P. Murray’s Lanexa Global Management said goodbye to the largest investment of the “upper crust” of funds we key on, totaling an estimated $1.7 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund said goodbye to about $0 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds last quarter.
What have insiders been doing with Limelight Networks, Inc. (NASDAQ:LLNW)?
Insider purchases made by high-level executives is best served when the company in question has seen transactions within the past 180 days. Over the latest half-year time frame, Limelight Networks, Inc. (NASDAQ:LLNW) has experienced 2 unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Limelight Networks, Inc. (NASDAQ:LLNW). These stocks are Reis Inc (NASDAQ:REIS), PowerSecure International, Inc. (NASDAQ:POWR), Digital Generation Inc (NASDAQ:DGIT), Swisher Hygiene, Inc. (NASDAQ:SWSH), and PRGX Global Inc (NASDAQ:PRGX). This group of stocks are the members of the business services industry and their market caps resemble LLNW’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Reis Inc (NASDAQ:REIS)||4||0||0|
|PowerSecure International, Inc. (NASDAQ:POWR)||9||0||2|
|Digital Generation Inc (NASDAQ:DGIT)||13||4||0|
|Swisher Hygiene, Inc. (NASDAQ:SWSH)||4||0||0|
|PRGX Global Inc (NASDAQ:PRGX)||9||0||1|
With the results exhibited by Insider Monkey’s research, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Limelight Networks, Inc. (NASDAQ:LLNW) is no exception.