Hedge Funds Are Selling Motorola Solutions Inc (NYSE:MSI)

Is Motorola Solutions Inc (NYSE:MSI) the right pick for your portfolio? The smart money is getting less bullish. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience

If you’d ask most stock holders, hedge funds are perceived as unimportant, outdated financial tools of the past. While there are over 8000 funds in operation today, we at Insider Monkey choose to focus on the aristocrats of this group, about 450 funds. Most estimates calculate that this group controls most of the smart money’s total asset base, and by monitoring their highest performing investments, we have revealed a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (see all of our picks from August).

Motorola Solutions logoJust as important, positive insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are many motivations for an insider to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this tactic if shareholders understand what to do (learn more here).

Now, we’re going to take a gander at the recent action encompassing Motorola Solutions Inc (NYSE:MSI).

How have hedgies been trading Motorola Solutions Inc (NYSE:MSI)?

Heading into 2013, a total of 35 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.

According to our comprehensive database, ValueAct Capital, managed by Jeffrey Ubben, holds the largest position in Motorola Solutions Inc (NYSE:MSI). ValueAct Capital has a $1.61 billion position in the stock, comprising 20.5% of its 13F portfolio. Sitting at the No. 2 spot is Iridian Asset Management, managed by David Cohen and Harold Levy, which held a $242 million position; the fund has 4% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Jeffrey Tannenbaum’s Fir Tree, William B. Gray’s Orbis Investment Management and George Soros’s Soros Fund Management.

Due to the fact that Motorola Solutions Inc (NYSE:MSI) has witnessed a declination in interest from the aggregate hedge fund industry, it’s safe to say that there were a few money managers who sold off their positions entirely in Q4. At the top of the heap, Barry Rosenstein’s JANA Partners dumped the biggest stake of the “upper crust” of funds we track, valued at about $81 million in stock., and Malcolm Fairbairn of Ascend Capital was right behind this move, as the fund said goodbye to about $12 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Motorola Solutions Inc (NYSE:MSI)?

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the latest six-month time period, Motorola Solutions Inc (NYSE:MSI) has seen zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned time-tested strategies, retail investors should always pay attention to hedge fund and insider trading sentiment, and Motorola Solutions Inc (NYSE:MSI) is no exception.

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 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

The 50 Best Personal Finance Blogs

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!