There are numerous exceptional money managers who have been able to consistently beat broader market benchmarks, which is just one reason why tracking the moves of elite hedge funds can only be considered wise. Of course, past performance does not guarantee future results, but successful money managers like Ray Dalio and Carl Icahn will most likely keep generating enormous amounts of money. Even if one does not believe in hedge funds’ ability to outperform stock market indexes, he or she should at least track their moves as part of a broader stock analysis process. But how can individual investors track hedge fund moves? One way to explore smart money moves is to look at their quarterly 13F filings, but it is also possible to track their most prominent moves by keeping track of their 13G, 13D and Form 4 filings. Having said that, the following article will examine four such filings submitted by Jeffrey Ubben, Clint Carlson, and other hedge fund managers.
While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
According to a Schedule 13G filing, Ryan Frick’s Dorsal Capital Management LLC owns 3.10 million shares of Infoblox Inc. (NYSE:BLOX), which make up 5.2% of the company’s outstanding common stock. This denotes an increase of 900,000 shares from the position revealed through Dorsal’s 13F filing for the third quarter. The shares of the network-services company have declined by 18% over the past year, so bottom-fishing investors might be inclined to look for entry opportunities at the moment. However, investors should be aware of the fact that the company has suffered losses in each fiscal year since its inception in 1999, save for 2010. Infoblox Inc. (NYSE:BLOX) reported net revenue of $94.0 million for the three-month period that ended October 31, up by 40.9% year-over-year and 8.1% quarter-over-quarter. The exceptional top-line growth enabled the company to tighten its net loss to $1.51 million from $10.21 million a year earlier, and analysts anticipate Infoblox to generate earnings per share of $0.44 for fiscal year 2016. The company invested heavily in growing its business during the quarter that ended October 31, which drove an increase in personnel-related costs (which accounted for a high share of the company’s operating expenses). 24 investment firms from our system had positions in the company at the end of the third quarter, amassing 22% of its shares. Eric Bannasch’s Cadian Capital owned 5.33 million shares of Infoblox Inc. (NYSE:BLOX) at the end of September.
Let’s head to the next pages of this article, where the remaining filings are carefully examined and discussed.