Should CommVault Systems, Inc. (NASDAQ:CVLT) investors track the following data?
If you were to ask many traders, hedge funds are viewed as overrated, old investment vehicles of a period lost to current times. Although there are over 8,000 hedge funds with their doors open in present day, this site aim at the crème de la crème of this group, about 525 funds. It is assumed that this group oversees the majority of all hedge funds’ total capital, and by paying attention to their best stock picks, we’ve uncovered a number of investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per 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 topped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as necessary, bullish insider trading sentiment is a second way to analyze the world of equities. Just as you’d expect, there are lots of reasons for an upper level exec to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” know what to do (learn more here).
Furthermore, it’s important to discuss the newest info surrounding CommVault Systems, Inc. (NASDAQ:CVLT).
How are hedge funds trading CommVault Systems, Inc. (NASDAQ:CVLT)?
In preparation for the third quarter, a total of 20 of the hedge funds we track were long in this stock, a change of 18% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their holdings considerably.
With a general bullishness amongst the titans, particular hedge funds were leading the bulls’ herd. Columbus Circle Investors, managed by Donald Chiboucis, assembled the biggest position in CommVault Systems, Inc. (NASDAQ:CVLT). Columbus Circle Investors had 92.2 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $64.7 million position during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, Richard Driehaus’s Driehaus Capital, and Van Schreiber’s Bennett Lawrence Management.
What do corporate executives and insiders think about CommVault Systems, Inc. (NASDAQ:CVLT)?
Bullish insider trading is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest 180-day time frame, CommVault Systems, Inc. (NASDAQ:CVLT) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to CommVault Systems, Inc. (NASDAQ:CVLT). These stocks are Msci Inc (NYSE:MSCI), MICROS Systems, Inc. (NASDAQ:MCRS), Splunk Inc (NASDAQ:SPLK), Cadence Design Systems Inc (NASDAQ:CDNS), and Fortinet Inc (NASDAQ:FTNT). All of these stocks are in the application software industry and their market caps are similar to CVLT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Msci Inc (NYSE:MSCI) | 16 | 0 | 0 |
| MICROS Systems, Inc. (NASDAQ:MCRS) | 25 | 0 | 0 |
| Splunk Inc (NASDAQ:SPLK) | 32 | 0 | 0 |
| Cadence Design Systems Inc (NASDAQ:CDNS) | 21 | 0 | 0 |
| Fortinet Inc (NASDAQ:FTNT) | 27 | 0 | 0 |
Using the results explained by Insider Monkey’s research, average investors should always pay attention to hedge fund and insider trading activity, and CommVault Systems, Inc. (NASDAQ:CVLT) applies perfectly to this mantra.
