Aruba Networks, Inc. (NASDAQ:ARUN) has experienced an increase in enthusiasm from smart money of late.
At the moment, there are many gauges investors can use to watch Mr. Market. A couple 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 top picks of the best hedge fund managers can outclass their index-focused peers by a superb margin (see just how much).
Just as integral, bullish insider trading sentiment is another way to break down the marketplace. Obviously, there are lots of reasons for an insider to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this tactic if “monkeys” know where to look (learn more here).
Consequently, we’re going to take a peek at the latest action surrounding Aruba Networks, Inc. (NASDAQ:ARUN).
What have hedge funds been doing with Aruba Networks, Inc. (NASDAQ:ARUN)?
Heading into 2013, a total of 15 of the hedge funds we track were long in this stock, a change of 36% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially.
When looking at the hedgies we track, Donald Chiboucis’s Columbus Circle Investors had the biggest position in Aruba Networks, Inc. (NASDAQ:ARUN), worth close to $67 million, accounting for 0.5% of its total 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, managed by Ken Griffin, which held a $29 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management, Jim Simons’s Renaissance Technologies and Glenn Russell Dubin’s Highbridge Capital Management.
Now, key hedge funds have been driving this bullishness. Columbus Circle Investors, managed by Donald Chiboucis, initiated the largest position in Aruba Networks, Inc. (NASDAQ:ARUN). Columbus Circle Investors had 67 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $21 million position during the quarter. The other funds with new positions in the stock are Scott Fine and Peter Richards’s Empire Capital Management, Israel Englander’s Millennium Management, and Paul Tudor Jones’s Tudor Investment Corp.
What do corporate executives and insiders think about Aruba Networks, Inc. (NASDAQ:ARUN)?
Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Aruba Networks, Inc. (NASDAQ:ARUN) has seen zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Juniper Networks, Inc. (NYSE:JNPR) | 29 | 1 | 4 |
| Finisar Corporation (NASDAQ:FNSR) | 14 | 0 | 3 |
| Palo Alto Networks Inc (NYSE:PANW) | 13 | 0 | 6 |
| Riverbed Technology, Inc. (NASDAQ:RVBD) | 23 | 0 | 5 |
With the results demonstrated by our strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Aruba Networks, Inc. (NASDAQ:ARUN) applies perfectly to this mantra.
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