Tangoe Inc (TNGO): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

Tangoe Inc (NASDAQ:TNGO) has experienced an increase in enthusiasm from smart money in recent months.

In the financial world, there are a multitude of methods shareholders can use to watch publicly traded companies. A pair of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can outclass the market by a superb amount (see just how much).

Just as integral, bullish insider trading sentiment is a second way to parse down the world of equities. Just as you’d expect, there are a variety of incentives for an insider to downsize shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the useful potential of this tactic if investors understand what to do (learn more here).

With all of this in mind, we’re going to take a peek at the key action regarding Tangoe Inc (NASDAQ:TNGO).

What does the smart money think about Tangoe Inc (NASDAQ:TNGO)?

At the end of the first quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of 43% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes considerably.

According to our comprehensive database, ZWEIG DIMENNA PARTNERS, managed by Joe DiMenna, holds the largest position in Tangoe Inc (NASDAQ:TNGO). ZWEIG DIMENNA PARTNERS has a $13.2 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Millennium Management, managed by Israel Englander, which held a $1.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Brad Gerstner’s Altimeter Capital Management, Jason F. Harris’s Kendall Square Capital and Steve Shapiro’s Intrepid Capital Management Inc DE.

Consequently, some big names were leading the bulls’ herd. Altimeter Capital Management, managed by Brad Gerstner, initiated the most outsized position in Tangoe Inc (NASDAQ:TNGO). Altimeter Capital Management had 1.7 million invested in the company at the end of the quarter. Jason F. Harris’s Kendall Square Capital also initiated a $1.1 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Matthew Hulsizer’s PEAK6 Capital Management, and Matthew Tewksbury’s Stevens Capital Management.

How have insiders been trading Tangoe Inc (NASDAQ:TNGO)?

Insider buying is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the last half-year time frame, Tangoe Inc (NASDAQ:TNGO) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Tangoe Inc (NASDAQ:TNGO). These stocks are CSG Systems International, Inc. (NASDAQ:CSGS), Ebix Inc (NASDAQ:EBIX), Descartes Systems Group (USA) (NASDAQ:DSGX), Perficient, Inc. (NASDAQ:PRFT), and Servicesource International Inc (NASDAQ:SREV). This group of stocks are in the business software & services industry and their market caps resemble TNGO’s market cap.