Do Hedge Funds and Insiders Love EZchip Semiconductor Ltd. (EZCH)?

Is EZchip Semiconductor Ltd. (NASDAQ:EZCH) the right investment to pursue these days? Money managers are in a bullish mood. The number of long hedge fund bets moved up by 1 recently.

To most market participants, hedge funds are seen as underperforming, outdated financial vehicles of yesteryear. While there are over 8000 funds in operation at the moment, we at Insider Monkey look at the crème de la crème of this group, about 450 funds. Most estimates calculate that this group has its hands on most of the smart money’s total asset base, and by watching their top investments, we have figured out a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Equally as integral, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. As the old adage goes: there are a number of stimuli for an insider to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).

With these “truths” under our belt, it’s important to take a look at the latest action surrounding EZchip Semiconductor Ltd. (NASDAQ:EZCH).

How are hedge funds trading EZchip Semiconductor Ltd. (NASDAQ:EZCH)?

Heading into 2013, a total of 7 of the hedge funds we track held long positions in this stock, a change of 17% from the third quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully.

EZchip Semiconductor Ltd. (NASDAQ:EZCH)When looking at the hedgies we track, Columbus Circle Investors, managed by Donald Chiboucis, holds the most valuable position in EZchip Semiconductor Ltd. (NASDAQ:EZCH). Columbus Circle Investors has a $33.3 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is Ryan Frick and Oliver Evans of Dorsal Capital Management, with a $29.8 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Jeffrey Vinik’s Vinik Asset Management, D. E. Shaw’s D E Shaw and Joseph A. Jolson’s Harvest Capital Strategies.

Consequently, specific money managers have been driving this bullishness. Vinik Asset Management, managed by Jeffrey Vinik, initiated the most valuable position in EZchip Semiconductor Ltd. (NASDAQ:EZCH). Vinik Asset Management had 8 million invested in the company at the end of the quarter.

How have insiders been trading EZchip Semiconductor Ltd. (NASDAQ:EZCH)?

Insider buying is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time frame, EZchip Semiconductor Ltd. (NASDAQ:EZCH) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to EZchip Semiconductor Ltd. (NASDAQ:EZCH). These stocks are Cabot Microelectronics Corporation (NASDAQ:CCMP), Amkor Technology, Inc. (NASDAQ:AMKR), Micrel, Incorporated (NASDAQ:MCRL), OmniVision Technologies, Inc. (NASDAQ:OVTI), and Aeroflex Holding Corp. (NYSE:ARX). This group of stocks belong to the semiconductor – integrated circuits industry and their market caps are similar to EZCH’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Cabot Microelectronics Corporation (NASDAQ:CCMP) 5 0 13
Amkor Technology, Inc. (NASDAQ:AMKR) 11 0 0
Micrel, Incorporated (NASDAQ:MCRL) 6 2 1
OmniVision Technologies, Inc. (NASDAQ:OVTI) 17 0 2
Aeroflex Holding Corp. (NYSE:ARX) 7 2 0

With the returns shown by Insider Monkey’s strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and EZchip Semiconductor Ltd. (NASDAQ:EZCH) is an important part of this process.

Click here to learn why you should track hedge funds

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!