Hedge Funds Are Dumping Callidus Software Inc. (CALD)

Callidus Software Inc. (NASDAQ:CALD) was in 11 hedge funds’ portfolio at the end of March. CALD shareholders have witnessed a decrease in hedge fund interest of late. There were 12 hedge funds in our database with CALD positions at the end of the previous quarter.

According to most shareholders, hedge funds are assumed to be underperforming, old financial tools of the past. While there are over 8000 funds with their doors open today, we at Insider Monkey look at the crème de la crème of this group, close to 450 funds. It is estimated that this group oversees most of the hedge fund industry’s total asset base, and by keeping an eye on their best picks, we have figured out a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy beat 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 outperformed the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Just as beneficial, optimistic insider trading activity is a second way to break down the investments you’re interested in. There are a variety of incentives for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this strategy if investors know where to look (learn more here).

With these “truths” under our belt, let’s take a glance at the latest action surrounding Callidus Software Inc. (NASDAQ:CALD).

What have hedge funds been doing with Callidus Software Inc. (NASDAQ:CALD)?

Heading into Q2, a total of 11 of the hedge funds we track were bullish in this stock, a change of -8% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes meaningfully.

Of the funds we track, Trigran Investments, managed by Douglas T. Granat, holds the most valuable position in Callidus Software Inc. (NASDAQ:CALD). Trigran Investments has a $7.7 million position in the stock, comprising 3.9% of its 13F portfolio. Coming in second is J. Carlo Cannell of Cannell Capital, with a $4 million position; 2.6% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Phil Frohlich’s Prescott Group Capital Management, John Zaro’s Bourgeon Capital and Peter A. Wright’s P.A.W. CAPITAL PARTNERS.

Due to the fact that Callidus Software Inc. (NASDAQ:CALD) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few money managers who were dropping their entire stakes last quarter. Intriguingly, Julian Robertson’s Tiger Management cut the largest investment of all the hedgies we key on, comprising about $3.4 million in stock., and Ian P. Murray of Lanexa Global Management was right behind this move, as the fund cut about $1.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds last quarter.

What have insiders been doing with Callidus Software Inc. (NASDAQ:CALD)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has seen transactions within the past half-year. Over the last 180-day time period, Callidus Software Inc. (NASDAQ:CALD) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s time-tested strategies, everyday investors should always monitor hedge fund and insider trading activity, and Callidus Software Inc. (NASDAQ:CALD) shareholders fit into this picture quite nicely.

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