Hedge Funds Are Betting On ExactTarget Inc (ET)

ExactTarget Inc (NYSE:ET) was in 14 hedge funds’ portfolio at the end of the first quarter of 2013. ET has experienced an increase in support from the world’s most elite money managers lately. There were 9 hedge funds in our database with ET positions at the end of the previous quarter.

In the financial world, there are a multitude of indicators shareholders can use to analyze the equity markets. A couple of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can beat the broader indices by a solid amount (see just how much).

Equally as key, optimistic insider trading activity is another way to break down the marketplace. There are a number of incentives for an upper level exec to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).

Consequently, it’s important to take a peek at the key action regarding ExactTarget Inc (NYSE:ET).

How have hedgies been trading ExactTarget Inc (NYSE:ET)?

At the end of the first quarter, a total of 14 of the hedge funds we track were long in this stock, a change of 56% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings substantially.

Of the funds we track, Clint Carlson’s Carlson Capital had the biggest position in ExactTarget Inc (NYSE:ET), worth close to $22.6 million, accounting for 0.3% of its total 13F portfolio. On Carlson Capital’s heels is ZWEIG DIMENNA PARTNERS, managed by Joe DiMenna, which held a $9 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other peers that are bullish include Scott Burney’s Bluefin Investment Management, Charles Clough’s Clough Capital Partners and SAC Subsidiary’s CR Intrinsic Investors.

As aggregate interest increased, key money managers have been driving this bullishness. ZWEIG DIMENNA PARTNERS, managed by Joe DiMenna, initiated the largest position in ExactTarget Inc (NYSE:ET). ZWEIG DIMENNA PARTNERS had 9 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also initiated a $5.4 million position during the quarter. The following funds were also among the new ET investors: Eric Semler’s TCS Capital Management, Scott Fine and Peter Richards’s Empire Capital Management, and Steven Cohen’s SAC Capital Advisors.

What do corporate executives and insiders think about ExactTarget Inc (NYSE:ET)?

Insider buying is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time frame, ExactTarget Inc (NYSE:ET) has seen zero unique insiders buying, and 17 insider sales (see the details of insider trades here).

With the returns demonstrated by Insider Monkey’s research, retail investors must always monitor hedge fund and insider trading sentiment, and ExactTarget Inc (NYSE:ET) applies perfectly to this mantra.

Click here to learn why you should track hedge funds