CSG Systems International, Inc. (NASDAQ:CSGS) shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months.
In the eyes of most stock holders, hedge funds are seen as unimportant, old investment tools of yesteryear. While there are over 8000 funds with their doors open today, we look at the elite of this group, around 450 funds. It is estimated that this group has its hands on the majority of the smart money’s total asset base, and by watching their best equity investments, we have found a number of investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 24 percentage points in 7 months (see the details here).
Just as important, positive insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are plenty of incentives for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this tactic if you know where to look (learn more here).
Keeping this in mind, it’s important to take a glance at the latest action regarding CSG Systems International, Inc. (NASDAQ:CSGS).
What have hedge funds been doing with CSG Systems International, Inc. (NASDAQ:CSGS)?
At year’s end, a total of 15 of the hedge funds we track were long in this stock, a change of 15% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the largest position in CSG Systems International, Inc. (NASDAQ:CSGS). Renaissance Technologies has a $32 million position in the stock, comprising 0.1% of its 13F portfolio. On Renaissance Technologies’s heels is Ric Dillon of Diamond Hill Capital, with a $13 million position; 0% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Anthony Bozza’s Lakewood Capital Management, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management.
As one would reasonably expect, specific money managers have jumped into CSG Systems International, Inc. (NASDAQ:CSGS) headfirst. Citadel Investment Group, managed by Ken Griffin, established the most outsized position in CSG Systems International, Inc. (NASDAQ:CSGS). Citadel Investment Group had 2 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also made a $0 million investment in the stock during the quarter. The only other fund with a new position in the stock is Mark A. Nordlicht’s Platinum Management.
What do corporate executives and insiders think about CSG Systems International, Inc. (NASDAQ:CSGS)?
Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the latest six-month time period, CSG Systems International, Inc. (NASDAQ:CSGS) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to CSG Systems International, Inc. (NASDAQ:CSGS). These stocks are NetScout Systems, Inc. (NASDAQ:NTCT), Servicesource International Inc (NASDAQ:SREV), Descartes Systems Group (USA) (NASDAQ:DSGX), Ebix Inc (NASDAQ:EBIX), and Interactive Intelligence Group Inc (NASDAQ:ININ). This group of stocks are the members of the business software & services industry and their market caps match CSGS’s market cap.
