If you were to ask many market players, hedge funds are assumed to be delayed, outdated financial vehicles of a forgotten age. Although there are more than 8,000 hedge funds in operation currently, this site looks at the upper echelon of this club, around 525 funds. It is widely held that this group has its hands on the majority of the smart money’s total assets, and by monitoring their highest quality picks, we’ve deciphered a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outpaced 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 topped the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Just as crucial, optimistic insider trading activity is another way to look at the marketplace. Just as you’d expect, there are a number of reasons for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this strategy if you understand where to look (learn more here).
Keeping this in mind, it’s important to study the latest info about Radware Ltd. (NASDAQ:RDWR).
Hedge fund activity in Radware Ltd. (NASDAQ:RDWR)
Heading into Q3, a total of 13 of the hedge funds we track were bullish in this stock, a change of 8% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably.
According to our 13F database, Cadian Capital, managed by Eric Bannasch, holds the biggest position in Radware Ltd. (NASDAQ:RDWR). Cadian Capital has a $54.3 million position in the stock, comprising 1.7% of its 13F portfolio. On Cadian Capital’s heels is James Dinan of York Capital Management, with a $17.6 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include D. E. Shaw’s D E Shaw, Mark N. Diker’s Diker Management and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
As industrywide interest increased, certain bigger names were leading the bulls’ herd. Cadian Capital, managed by Eric Bannasch, created the biggest position in Radware Ltd. (NASDAQ:RDWR). Cadian Capital had 54.3 million invested in the company at the end of the quarter. James Dinan’s York Capital Management also initiated a $17.6 million position during the quarter. The following funds were also among the new RDWR investors: D. E. Shaw’s D E Shaw, Mark N. Diker’s Diker Management, and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
What do corporate executives and insiders think about Radware Ltd. (NASDAQ:RDWR)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Radware Ltd. (NASDAQ:RDWR) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Radware Ltd. (NASDAQ:RDWR). These stocks are iGATE Corporation (NASDAQ:IGTE), EPAM Systems Inc (NYSE:EPAM), Unisys Corporation (NYSE:UIS), Virtusa Corporation (NASDAQ:VRTU), and Sykes Enterprises, Incorporated (NASDAQ:SYKE). This group of stocks are the members of the information technology services industry and their market caps are closest to RDWR’s market cap.