Servicesource International Inc (NASDAQ:SREV) was in 7 hedge funds’ portfolio at the end of the fourth quarter of 2012. SREV investors should be aware of a decrease in enthusiasm from smart money of late. There were 8 hedge funds in our database with SREV holdings at the end of the previous quarter.
In the eyes of most stock holders, hedge funds are perceived as worthless, outdated investment vehicles of the past. While there are over 8000 funds trading at the moment, we at Insider Monkey hone in on the bigwigs of this group, around 450 funds. Most estimates calculate that this group oversees the majority of all hedge funds’ total asset base, and by watching their highest performing investments, we have formulated a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outpaced 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 outpaced the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).
Equally as beneficial, positive insider trading sentiment is a second way to break down the stock market universe. Just as you’d expect, there are a variety of reasons for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).
Consequently, let’s take a gander at the recent action encompassing Servicesource International Inc (NASDAQ:SREV).
Hedge fund activity in Servicesource International Inc (NASDAQ:SREV)
At the end of the fourth quarter, a total of 7 of the hedge funds we track were long in this stock, a change of -13% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies we track, Rishi Bajaj, Toby Symonds, and Steve Tesoriere’s Altai Capital had the most valuable position in Servicesource International Inc (NASDAQ:SREV), worth close to $15.8 million, accounting for 6.3% of its total 13F portfolio. On Altai Capital’s heels is Chuck Royce of Royce & Associates, with a $4.2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Jim Simons’s Renaissance Technologies, Phil Frohlich’s Prescott Group Capital Management and Ken Griffin’s Citadel Investment Group.
Due to the fact that Servicesource International Inc (NASDAQ:SREV) has witnessed bearish sentiment from hedge fund managers, it’s safe to say that there exists a select few funds that decided to sell off their entire stakes in Q4. At the top of the heap, Steven Cohen’s SAC Capital Advisors sold off the largest position of the 450+ funds we key on, worth close to $1.2 million in stock.. Mike Vranos’s fund, Ellington, also dropped its stock, about $0.5 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 1 funds in Q4.
Insider trading activity in Servicesource International Inc (NASDAQ:SREV)
Insider buying is best served when the company in question has experienced transactions within the past 180 days. Over the last six-month time period, Servicesource International Inc (NASDAQ:SREV) has seen 1 unique insiders buying, and 7 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Servicesource International Inc (NASDAQ:SREV). These stocks are Perficient, Inc. (NASDAQ:PRFT), CSG Systems International, Inc. (NASDAQ:CSGS), Tangoe Inc (NASDAQ:TNGO), Ebix Inc (NASDAQ:EBIX), and Descartes Systems Group (USA) (NASDAQ:DSGX). This group of stocks belong to the business software & services industry and their market caps match SREV’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Perficient, Inc. (NASDAQ:PRFT) | 7 | 2 | 5 |
| CSG Systems International, Inc. (NASDAQ:CSGS) | 15 | 0 | 4 |
| Tangoe Inc (NASDAQ:TNGO) | 7 | 0 | 2 |
| Ebix Inc (NASDAQ:EBIX) | 10 | 0 | 1 |
| Descartes Systems Group (USA) (NASDAQ:DSGX) | 2 | 0 | 0 |
With the results demonstrated by our studies, retail investors must always monitor hedge fund and insider trading activity, and Servicesource International Inc (NASDAQ:SREV) is an important part of this process.
