Pactera Technology Intl Ltd (ADR) (PACT): Are Hedge Funds Right About This Stock? – Velti Plc (VELT), Datawatch Corporation (DWCH)

Is Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT) a good stock to buy now? The smart money is taking an optimistic view. The number of bullish hedge fund bets moved up by 10 recently.

In the 21st century investor’s toolkit, there are tons of metrics market participants can use to track Mr. Market. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can trounce their index-focused peers by a superb margin (see just how much).

Equally as key, optimistic insider trading activity is another way to break down the stock market universe. As the old adage goes: there are a variety of motivations for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this tactic if “monkeys” know where to look (learn more here).

Keeping this in mind, let’s take a peek at the latest action surrounding Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT).

What does the smart money think about Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT)?

When looking at the hedgies we track, Lone Pine Capital, managed by Stephen Mandel, holds the largest position in Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT). Lone Pine Capital has a $60 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by J Kevin Kenny Jr of Emerging Sovereign Group, with a $25 million position; the fund has 2.5% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Roberto Mignone’s Bridger Management, Seymour Sy Kaufman and Michael Stark’s Crosslink Capital and Brian Kelly’s Asian Century Quest.

Now, key hedge funds were breaking ground themselves. Lone Pine Capital, managed by Stephen Mandel, created the biggest position in Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT). Lone Pine Capital had 60 million invested in the company at the end of the quarter. J Kevin Kenny Jr’s Emerging Sovereign Group also initiated a $25 million position during the quarter. The following funds were also among the new PACT investors: Roberto Mignone’s Bridger Management, Seymour Sy Kaufman and Michael Stark’s Crosslink Capital, and Brian Kelly’s Asian Century Quest.

What do corporate executives and insiders think about Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT)?

Insider buying is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest 180-day time frame, Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT). These stocks are Velti Plc (NASDAQ:VELT), Simulations Plus, Inc. (NASDAQ:SLP), Perion Network Ltd (NASDAQ:PERI), Datawatch Corporation (NASDAQ:DWCH), and Official Payments Holdings Inc (NASDAQ:OPAY). All of these stocks are in the business software & services industry and their market caps are closest to PACT’s market cap.

With the returns exhibited by the aforementioned strategies, retail investors must always pay attention to hedge fund and insider trading activity, and Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT) is no exception.

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