Syntel, Inc. (NASDAQ:SYNT) was in 11 hedge funds’ portfolio at the end of March. SYNT investors should be aware of an increase in enthusiasm from smart money recently. There were 9 hedge funds in our database with SYNT positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are a multitude of gauges market participants can use to analyze stocks. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outpace the market by a solid amount (see just how much).
Just as integral, positive insider trading activity 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 just one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this method if piggybackers know where to look (learn more here).
Now, let’s take a peek at the recent action surrounding Syntel, Inc. (NASDAQ:SYNT).
What does the smart money think about Syntel, Inc. (NASDAQ:SYNT)?
In preparation for this quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of 22% from the first quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the biggest position in Syntel, Inc. (NASDAQ:SYNT). Renaissance Technologies has a $31.1 million position in the stock, comprising 0.1% of its 13F portfolio. On Renaissance Technologies’s heels is Royce & Associates, managed by Chuck Royce, which held a $25.6 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Joel Greenblatt’s Gotham Asset Management, Glenn Russell Dubin’s Highbridge Capital Management and Mike Vranos’s Ellington.
As aggregate interest increased, key money managers were leading the bulls’ herd. SAC Capital Advisors, managed by Steven Cohen, established the most valuable position in Syntel, Inc. (NASDAQ:SYNT). SAC Capital Advisors had 0.7 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $0.3 million position during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.
What have insiders been doing with Syntel, Inc. (NASDAQ:SYNT)?
Insider buying is best served when the company in focus has seen transactions within the past 180 days. Over the last half-year time frame, Syntel, Inc. (NASDAQ:SYNT) has seen zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Syntel, Inc. (NASDAQ:SYNT). These stocks are Rackspace Hosting, Inc. (NYSE:RAX), Gartner Inc (NYSE:IT), Acxiom Corporation (NASDAQ:ACXM), ServiceNow Inc (NYSE:NOW), and NCR Corporation (NYSE:NCR). This group of stocks are in the information technology services industry and their market caps are closest to SYNT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Rackspace Hosting, Inc. (NYSE:RAX)||18||0||14|
|Gartner Inc (NYSE:IT)||6||0||10|
|Acxiom Corporation (NASDAQ:ACXM)||15||0||0|
|ServiceNow Inc (NYSE:NOW)||18||0||11|
|NCR Corporation (NYSE:NCR)||34||0||8|
With the results demonstrated by our strategies, retail investors must always monitor hedge fund and insider trading activity, and Syntel, Inc. (NASDAQ:SYNT) is an important part of this process.