Here is What Hedge Funds Think About Infosys Ltd ADR (INFY)

Should Infosys Ltd ADR (NYSE:INFY) investors track the following data?

To many market players, hedge funds are assumed to be delayed, outdated investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation in present day, Insider Monkey focuses on the bigwigs of this group, close to 525 funds. Analysts calculate that this group has its hands on the lion's share of all hedge funds' total assets, and by watching their best stock picks, we've figured out a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find the details here).

Equally as key, optimistic insider trading sentiment is a second way to analyze the financial markets. There are a variety of motivations for an executive to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this tactic if "monkeys" understand where to look (learn more here).

Now that that's out of the way, it's important to analyze the newest info surrounding Infosys Ltd ADR (NYSE:INFY).


How have hedgies been trading Infosys Ltd ADR (NYSE:INFY)?


At the end of the second quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of -21% from the first quarter. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their stakes substantially.

Infosys Ltd ADR (NYSE:INFY)When using filings from the hedgies we track, Polaris Capital Management, managed by Bernard Horn, holds the largest position in Infosys Ltd ADR (NYSE:INFY). Polaris Capital Management has a $89.2 million position in the stock, comprising 5% of its 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $62.7 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Ken Fisher's Fisher Asset Management, Jim Simons's Renaissance Technologies and Peter Rathjens Bruce Clarke and John Campbell's Arrowstreet Capital.


As Infosys Ltd ADR (NYSE:INFY) has experienced dropping sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain "tier" of money managers that slashed their full holdings last quarter. It's worth mentioning that Robert B. Gillam's McKinley Capital Management dropped the largest stake of all the hedgies we track, comprising about $10.8 million in call options., and Dmitry Balyasny of Balyasny Asset Management was right behind this move, as the fund dropped about $6.7 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 3 funds last quarter.


What do corporate executives and insiders think about Infosys Ltd ADR (NYSE:INFY)?


Insider buying made by high-level executives is best served when the company in focus has seen transactions within the past 180 days. Over the last 180-day time frame, Infosys Ltd ADR (NYSE:INFY) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We'll also examine the relationship between both of these indicators in other stocks similar to Infosys Ltd ADR (NYSE:INFY). These stocks are Concur Technologies, Inc. (NASDAQ:CNQR), National Instruments Corp (NASDAQ:NATI), ANSYS, Inc. (NASDAQ:ANSS), Autodesk, Inc. (NASDAQ:ADSK), and VMware, Inc. (NYSE:VMW). This group of stocks belong to the technical & system software industry and their market caps are closest to INFY's market cap.
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Company Name
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling

Concur Technologies, Inc. (NASDAQ:CNQR)
15
0
0

National Instruments Corp (NASDAQ:NATI)
8
0
0

ANSYS, Inc. (NASDAQ:ANSS)
12
0
0

Autodesk, Inc. (NASDAQ:ADSK)
28
0
0

VMware, Inc. (NYSE:VMW)
29
0
0

Using the returns explained by the previously mentioned strategies, regular investors should always pay attention to hedge fund and insider trading activity, and Infosys Ltd ADR (NYSE:INFY) applies perfectly to this mantra.

Discover how hedge fund piggybacking can benefit you

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