Hedge Funds Are Buying ACI Worldwide Inc (ACIW)
Should ACI Worldwide Inc (NASDAQ:ACIW) investors track the following data?
Now, according to many of your peers, hedge funds are viewed as overrated, outdated investment vehicles of a period lost to current times. Although there are over 8,000 hedge funds trading today, this site aim at the moguls of this group, around 525 funds. It is widely held that this group has its hands on most of all hedge funds' total capital, and by tracking their highest performing picks, we've revealed a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a 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 outperformed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as necessary, positive insider trading sentiment is another way to look at the investments you're interested in. Obviously, there are lots of motivations for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this tactic if "monkeys" know what to do (learn more here).
Keeping this in mind, we're going to analyze the latest info surrounding ACI Worldwide Inc (NASDAQ:ACIW).
How are hedge funds trading ACI Worldwide Inc (NASDAQ:ACIW)?
In preparation for the third quarter, a total of 17 of the hedge funds we track were long in this stock, a change of 42% from the first quarter. With hedge funds' sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings significantly.
Out of the hedge funds we follow, Claus Moller's P2 Capital Partners had the biggest position in ACI Worldwide Inc (NASDAQ:ACIW), worth close to $59 million, accounting for 9.5% of its total 13F portfolio. Coming in second is Amy Minella of Cardinal Capital, with a $41.3 million position; the fund has 2.6% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Larry Robbins's Glenview Capital, Chuck Royce's Royce & Associates and Ken Griffin's Citadel Investment Group.
As industrywide interest increased, certain money managers were leading the bulls' herd. P2 Capital Partners, managed by Claus Moller, assembled the most valuable position in ACI Worldwide Inc (NASDAQ:ACIW). P2 Capital Partners had 59 million invested in the company at the end of the quarter. Amy Minella's Cardinal Capital also made a $41.3 million investment in the stock during the quarter. The following funds were also among the new ACIW investors: Larry Robbins's Glenview Capital, Chuck Royce's Royce & Associates, and Ken Griffin's Citadel Investment Group.
How have insiders been trading ACI Worldwide Inc (NASDAQ:ACIW)?
Insider buying is at its handiest when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, ACI Worldwide Inc (NASDAQ:ACIW) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll check out the relationship between both of these indicators in other stocks similar to ACI Worldwide Inc (NASDAQ:ACIW). These stocks are National Instruments Corp (NASDAQ:NATI), Concur Technologies, Inc. (NASDAQ:CNQR), PTC Inc (NASDAQ:PMTC), Mentor Graphics Corp (NASDAQ:MENT), and Tyler Technologies, Inc. (NYSE:TYL). This group of stocks are in the technical & system software industry and their market caps are closest to ACIW's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
National Instruments Corp (NASDAQ:NATI)
Concur Technologies, Inc. (NASDAQ:CNQR)
PTC Inc (NASDAQ:PMTC)
Mentor Graphics Corp (NASDAQ:MENT)
Tyler Technologies, Inc. (NYSE:TYL)
Using the results shown by the previously mentioned strategies, regular investors should always watch hedge fund and insider trading sentiment, and ACI Worldwide Inc (NASDAQ:ACIW) shareholders fit into this picture quite nicely.