Hedge Funds Are Dumping Mellanox Technologies, Ltd. (NASDAQ:MLNX)

Mellanox Technologies, Ltd. (NASDAQ:MLNX) was in 21 hedge funds’ portfolio at the end of December. MLNX investors should pay attention to a decrease in hedge fund interest lately. There were 24 hedge funds in our database with MLNX positions at the end of the previous quarter.

In the financial world, there are a multitude of metrics shareholders can use to watch publicly traded companies. A duo of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outpace the S&P 500 by a significant margin (see just how much).

Mellanox Technologies, Ltd. (NASDAQ:MLNX)Just as beneficial, optimistic insider trading sentiment is a second way to break down the marketplace. Just as you’d expect, there are lots of stimuli for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this strategy if shareholders understand what to do (learn more here).

Now, let’s take a gander at the key action regarding Mellanox Technologies, Ltd. (NASDAQ:MLNX).

What does the smart money think about Mellanox Technologies, Ltd. (NASDAQ:MLNX)?

Heading into 2013, a total of 21 of the hedge funds we track held long positions in this stock, a change of -13% from the third quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings substantially.

Of the funds we track, Tiger Global Management LLC holds the most valuable position in Mellanox Technologies, Ltd. (NASDAQ:MLNX). Tiger Global Management LLC has a $42 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $36 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Philippe Laffont’s Coatue Management, Richard Driehaus’s Driehaus Capital and Jim Simons’s Renaissance Technologies.

Because Mellanox Technologies, Ltd. (NASDAQ:MLNX) has experienced falling interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of fund managers that decided to sell off their positions entirely in Q4. Interestingly, Daniel Benton’s Andor Capital Management sold off the largest position of the 450+ funds we key on, worth close to $51 million in stock., and Robert B. Gillam of McKinley Capital Management was right behind this move, as the fund dropped about $32 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 3 funds in Q4.

What do corporate executives and insiders think about Mellanox Technologies, Ltd. (NASDAQ:MLNX)?

Bullish insider trading is best served when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, Mellanox Technologies, Ltd. (NASDAQ:MLNX) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Mellanox Technologies, Ltd. (NASDAQ:MLNX) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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 Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!