Of the funds tracked by Insider Monkey, Paul Singer’s Elliott Management has the biggest position in Mitel Networks Corporation (NASDAQ:MITL), worth close to $96.3 million, amounting to 1% of its total 13F portfolio. On Elliott Management’s heels is Renaissance Technologies, founded by Jim Simons, which holds a $11.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining professional money managers that hold long positions contain David E. Shaw’s D E Shaw, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Israel Englander’s Millennium Management.
Because Mitel Networks Corporation (NASDAQ:MITL) has faced declining sentiment from the aggregate hedge fund industry, we can see that there was a specific group of funds that elected to cut their entire stakes in the first quarter. It’s worth mentioning that Clint Carlson’s Carlson Capital dumped the largest investment of the 700 funds watched by Insider Monkey, valued at about $6.1 million in stock, and Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors was right behind this move, as the fund dropped about $0.6 million worth of shares. These transactions are important to note, as total hedge fund interest was cut by three funds in the fourth quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Mitel Networks Corporation (NASDAQ:MITL) but similarly valued. We will take a look at Caesars Entertainment Corp (NASDAQ:CZR), iKang Healthcare Group Inc (ADR) (NASDAQ:KANG), PennyMac Mortgage Investment Trust (NYSE:PMT), and Ferro Corporation (NYSE:FOE). This group of stocks’ market valuations resembles MITL’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CZR | 19 | 270775 | 0 |
| KANG | 12 | 67523 | 4 |
| PMT | 13 | 60450 | -3 |
| FOE | 22 | 231836 | -3 |
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $158 million. That figure was $116 million in MITL’s case. Ferro Corporation (NYSE:FOE) is the most popular stock in this table. On the other hand, iKang Healthcare Group Inc (ADR) (NASDAQ:KANG) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Mitel Networks Corporation (NASDAQ:MITL) is even less popular than KANG. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
Disclosure: None
