Is Wipro Limited (ADR) (NYSE:WIT) a great stock to buy now? The best stock pickers are getting more optimistic. The number of long hedge fund bets advanced by 1 in recent months.
In today’s marketplace, there are plenty of metrics investors can use to track their holdings. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can beat their index-focused peers by a healthy margin (see just how much).
Just as key, bullish insider trading sentiment is another way to break down the financial markets. Just as you’d expect, there are a variety of incentives for an insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Several academic studies have demonstrated the market-beating potential of this strategy if investors know what to do (learn more here).
With all of this in mind, it’s important to take a peek at the latest action encompassing Wipro Limited (ADR) (NYSE:WIT).
What does the smart money think about Wipro Limited (ADR) (NYSE:WIT)?
Heading into Q2, a total of 7 of the hedge funds we track were long in this stock, a change of 17% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their stakes significantly.
When looking at the hedgies we track, AQR Capital Management, managed by Cliff Asness, holds the most valuable position in Wipro Limited (ADR) (NYSE:WIT). AQR Capital Management has a $4.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $4.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include D. E. Shaw’s D E Shaw, Steven Cohen’s SAC Capital Advisors and Bruce Kovner’s Caxton Associates LP.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens Bruce Clarke and John Campbell, created the largest position in Wipro Limited (ADR) (NYSE:WIT). Arrowstreet Capital had 4.1 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $0.4 million position during the quarter. The other funds with new positions in the stock are Bruce Kovner’s Caxton Associates LP and Israel Englander’s Millennium Management.
What do corporate executives and insiders think about Wipro Limited (ADR) (NYSE:WIT)?
Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the latest half-year time frame, Wipro Limited (ADR) (NYSE:WIT) has experienced 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 Wipro Limited (ADR) (NYSE:WIT). These stocks are Gartner Inc (NYSE:IT), Rackspace Hosting, Inc. (NYSE:RAX), Computer Sciences Corporation (NYSE:CSC), Xerox Corporation (NYSE:XRX), and Accenture Plc (NYSE:ACN). All of these stocks are in the information technology services industry and their market caps resemble WIT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Gartner Inc (NYSE:IT) | 6 | 0 | 10 |
| Rackspace Hosting, Inc. (NYSE:RAX) | 18 | 0 | 14 |
| Computer Sciences Corporation (NYSE:CSC) | 26 | 0 | 1 |
| Xerox Corporation (NYSE:XRX) | 39 | 0 | 6 |
| Accenture Plc (NYSE:ACN) | 28 | 0 | 11 |
With the returns exhibited by Insider Monkey’s strategies, retail investors should always monitor hedge fund and insider trading activity, and Wipro Limited (ADR) (NYSE:WIT) shareholders fit into this picture quite nicely.
