Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Micron Technology, Inc. (NASDAQ:MU) in this article.
Is Micron Technology, Inc. (NASDAQ:MU) an excellent stock to buy now? Hedge funds are selling. The number of bullish hedge fund bets decreased by seven lately. MU was in 64 hedge funds’ portfolios at the end of the fourth quarter of 2015. There were 71 hedge funds in our database with MU positions at the end of the previous quarter. At the end of this article we will also compare MU to other stocks, including Weyerhaeuser Company (NYSE:WY), Molson Coors Brewing Company (NYSE:TAP), and Republic Services, Inc. (NYSE:RSG) to get a better sense of its popularity.
To most market participants, hedge funds are viewed as underperforming, old financial tools of yesteryear. While there are over 8000 funds in operation at present, We look at the top tier of this group, approximately 700 funds. These money managers administer the lion’s share of all hedge funds’ total capital, and by tracking their highest performing picks, Insider Monkey has uncovered many investment strategies that have historically exceeded Mr. Market. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
One of Micron’s long-term shareholders was billionaire David Einhorn’s Greenlight Capital, which unloaded the position after the stock tumbled during the third quarter of 2015. In this way, during the fourth quarter, Greenlight sold around 12.37 million shares and closed the position. Prior to that, the investor had been quite bullish on the stock and discussed Micron in several of its letters to investors. On the other hand, Whitney Tilson’s T2 Partners saw the drop in the third quarter as an opportunity to buy and further increased its stake between July and September. On the next page, we are going to take a closer look at the last comments both investors made about Micron.