Genpact Limited (NYSE:G) has experienced an increase in support from the world’s most elite money managers recently.
According to most investors, hedge funds are seen as unimportant, old investment vehicles of years past. While there are more than 8000 funds with their doors open today, we at Insider Monkey look at the elite of this group, about 450 funds. It is widely believed that this group controls most of the smart money’s total capital, and by keeping an eye on their top equity investments, we have determined a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat 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 outpaced the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Just as key, positive insider trading sentiment is another way to break down the marketplace. As the old adage goes: there are lots of stimuli for a bullish insider to sell shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this method if you understand what to do (learn more here).
Consequently, it’s important to take a peek at the latest action regarding Genpact Limited (NYSE:G).
Hedge fund activity in Genpact Limited (NYSE:G)
Heading into 2013, a total of 16 of the hedge funds we track were long in this stock, a change of 14% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings considerably.
When looking at the hedgies we track, Eminence Capital, managed by Ricky Sandler, holds the biggest position in Genpact Limited (NYSE:G). Eminence Capital has a $99 million position in the stock, comprising 2.9% of its 13F portfolio. On Eminence Capital’s heels is Royce & Associates, managed by Chuck Royce, which held a $20 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers with similar optimism include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and SAC Subsidiary’s Sigma Capital Management.
As industrywide interest jumped, some big names have jumped into Genpact Limited (NYSE:G) headfirst. Sigma Capital Management, managed by SAC Subsidiary, created the most valuable position in Genpact Limited (NYSE:G). Sigma Capital Management had 10 million invested in the company at the end of the quarter. James Dinan’s York Capital Management also initiated a $6 million position during the quarter. The other funds with brand new G positions are John Overdeck and David Siegel’s Two Sigma Advisors and Daniel S. Och’s OZ Management.
How have insiders been trading Genpact Limited (NYSE:G)?
Insider buying is most useful when the company in question has seen transactions within the past six months. Over the last half-year time period, Genpact Limited (NYSE:G) has experienced zero unique insiders buying, and 27 insider sales (see the details of insider trades here).
With the results demonstrated by our time-tested strategies, everyday investors must always monitor hedge fund and insider trading activity, and Genpact Limited (NYSE:G) shareholders fit into this picture quite nicely.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.