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To most market participants, hedge funds are seen as underperforming, outdated financial vehicles of yesteryear.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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
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

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!