Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT) investors should be aware of an increase in support from the world’s most elite money managers recently.
If you’d ask most stock holders, hedge funds are seen as worthless, outdated investment vehicles of the past. While there are more than 8000 funds with their doors open at the moment, we at Insider Monkey choose to focus on the masters of this group, around 450 funds. It is estimated that this group has its hands on the majority of all hedge funds’ total asset base, and by tracking their best investments, we have unearthed a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually 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 outclassed the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).
Just as beneficial, positive insider trading sentiment is a second way to parse down the stock market universe. There are many motivations for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the impressive potential of this strategy if “monkeys” understand what to do (learn more here).
Keeping this in mind, let’s take a gander at the key action encompassing Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT).
Hedge fund activity in Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT)
At the end of the first quarter, a total of 13 of the hedge funds we track held long positions in this stock, a change of 8% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Lone Pine Capital, managed by Stephen Mandel, holds the most valuable position in Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT). Lone Pine Capital has a $48.9 million position in the stock, comprising 0.3% of its 13F portfolio. On Lone Pine Capital’s heels is J Kevin Kenny Jr of Emerging Sovereign Group, with a $19.9 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Lei Zhang’s Hillhouse Capital Management, Roberto Mignone’s Bridger Management and Seymour Sy Kaufman and Michael Stark’s Crosslink Capital.
Consequently, some big names have jumped into Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT) headfirst. Renaissance Technologies, managed by Jim Simons, created the most outsized position in Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT). Renaissance Technologies had 0.9 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.1 million position during the quarter.
How have insiders been trading Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT)?
Insider buying is most useful when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT). These stocks are Velti Plc (NASDAQ:VELT), Simulations Plus, Inc. (NASDAQ:SLP), Perion Network Ltd (NASDAQ:PERI), Datawatch Corporation (NASDAQ:DWCH), and Official Payments Holdings Inc (NASDAQ:OPAY). This group of stocks are the members of the business software & services industry and their market caps match PACT’s market cap.