Akamai Technologies, Inc. (NASDAQ:AKAM) was in 19 hedge funds’ portfolio at the end of December. AKAM investors should be aware of a decrease in enthusiasm from smart money in recent months. There were 27 hedge funds in our database with AKAM positions at the end of the previous quarter.
In the eyes of most traders, hedge funds are assumed to be worthless, outdated investment vehicles of the past. While there are more than 8000 funds with their doors open at present, we look at the upper echelon of this group, about 450 funds. It is estimated that this group controls most of the hedge fund industry’s total capital, and by keeping an eye on their highest performing investments, we have deciphered a few investment strategies that have historically outpaced Mr. Market. 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 started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).
Just as important, optimistic insider trading activity is another way to break down the financial markets. There are plenty of stimuli for an insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this method if shareholders know what to do (learn more here).
Now, we’re going to take a gander at the latest action regarding Akamai Technologies, Inc. (NASDAQ:AKAM).
Hedge fund activity in Akamai Technologies, Inc. (NASDAQ:AKAM)
Heading into 2013, a total of 19 of the hedge funds we track held long positions in this stock, a change of -30% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.
When looking at the hedgies we track, Philippe Laffont’s Coatue Management had the most valuable position in Akamai Technologies, Inc. (NASDAQ:AKAM), worth close to $135 million, accounting for 2.2% of its total 13F portfolio. The second largest stake is held by Brookside Capital, managed by Bain Capital, which held a $130 million position; 1.6% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Donald Chiboucis’s Columbus Circle Investors, Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management and Christopher Lord’s Criterion Capital.
Seeing as Akamai Technologies, Inc. (NASDAQ:AKAM) has faced bearish sentiment from hedge fund managers, logic holds that there lies a certain “tier” of hedgies who were dropping their full holdings in Q4. Interestingly, Peter J. Eichler Jr.’s Aletheia Research and Management said goodbye to the biggest stake of all the hedgies we key on, worth an estimated $14 million in stock.. Dmitry Balyasny’s fund, Balyasny Asset Management, also said goodbye to its stock, about $5 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 8 funds in Q4.
Insider trading activity in Akamai Technologies, Inc. (NASDAQ:AKAM)
Insider buying is best served when the company in question has seen transactions within the past 180 days. Over the latest half-year time period, Akamai Technologies, Inc. (NASDAQ:AKAM) has experienced 2 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
With the results exhibited by Insider Monkey’s time-tested strategies, everyday investors must always monitor hedge fund and insider trading activity, and Akamai Technologies, Inc. (NASDAQ:AKAM) shareholders fit into this picture quite nicely.
Click here to learn more about Insider Monkey’s Hedge Fund Newsletter
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.
