Here is What Hedge Funds Think About Red Hat, Inc. (NYSE:RHT)

Red Hat, Inc. (NYSE:RHT) was in 25 hedge funds’ portfolio at the end of December. RHT investors should pay attention to a decrease in enthusiasm from smart money of late. There were 29 hedge funds in our database with RHT holdings at the end of the previous quarter.

Red Hat, Inc. (NYSE:RHT)

If you’d ask most shareholders, hedge funds are seen as unimportant, outdated financial vehicles of yesteryear. While there are more than 8000 funds with their doors open at the moment, we at Insider Monkey choose to focus on the elite of this club, close to 450 funds. Most estimates calculate that this group has its hands on the majority of the hedge fund industry’s total asset base, and by tracking their highest performing stock picks, we have unearthed a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually 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 topped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Equally as important, optimistic insider trading sentiment is a second way to break down the marketplace. Obviously, there are a variety of stimuli for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this strategy if investors know where to look (learn more here).

Keeping this in mind, we’re going to take a peek at the latest action regarding Red Hat, Inc. (NYSE:RHT).

What have hedge funds been doing with Red Hat, Inc. (NYSE:RHT)?

In preparation for this year, a total of 25 of the hedge funds we track held long positions in this stock, a change of -14% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.

When looking at the hedgies we track, Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management had the most valuable position in Red Hat, Inc. (NYSE:RHT), worth close to $182 million, accounting for 5.4% of its total 13F portfolio. The second largest stake is held by D. E. Shaw of D E Shaw, with a $69 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Brett Barakett’s Tremblant Capital, Noam Gottesman’s GLG Partners and Joe DiMenna’s ZWEIG DIMENNA PARTNERS.

Due to the fact that Red Hat, Inc. (NYSE:RHT) has witnessed a declination in interest from the smart money, we can see that there was a specific group of fund managers who sold off their full holdings in Q4. Interestingly, Brett Barakett’s Tremblant Capital dropped the biggest investment of all the hedgies we key on, worth an estimated $40 million in call options. Daniel Benton’s fund, Andor Capital Management, also sold off its stock, about $28 million worth. These moves are important to note, as total hedge fund interest fell by 4 funds in Q4.

How are insiders trading Red Hat, Inc. (NYSE:RHT)?

Insider purchases made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time period, Red Hat, Inc. (NYSE:RHT) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s research, everyday investors must always monitor hedge fund and insider trading activity, and Red Hat, Inc. (NYSE:RHT) is an important part of this process.

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.

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 Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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!