Infoblox Inc (NYSE:BLOX) was in 18 hedge funds’ portfolio at the end of March. BLOX shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. There were 12 hedge funds in our database with BLOX positions at the end of the previous quarter.
To most market participants, hedge funds are viewed as worthless, old financial tools of the past. While there are over 8000 funds trading at present, we choose to focus on the leaders of this club, about 450 funds. Most estimates calculate that this group has its hands on the majority of the smart money’s total asset base, and by tracking their top equity investments, we have identified a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outstripped 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 outclassed the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Equally as beneficial, positive insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are lots of motivations for an insider to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this method if investors know what to do (learn more here).
Now, it’s important to take a look at the key action regarding Infoblox Inc (NYSE:BLOX).
How have hedgies been trading Infoblox Inc (NYSE:BLOX)?
In preparation for this quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of 50% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly.
Of the funds we track, Gregory A. Weaver’s Invicta Capital Management had the biggest position in Infoblox Inc (NYSE:BLOX), worth close to $21.7 million, accounting for 9.7% of its total 13F portfolio. Sitting at the No. 2 spot is Eric Bannasch of Cadian Capital, with a $15.9 million position; 0.4% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Brian Ashford-Russell and Tim Woolley’s Polar Capital, Drew Cupps’s Cupps Capital Management and Joseph A. Jolson’s Harvest Capital Strategies.
As one would reasonably expect, key money managers have jumped into Infoblox Inc (NYSE:BLOX) headfirst. Harvest Capital Strategies, managed by Joseph A. Jolson, established the most outsized position in Infoblox Inc (NYSE:BLOX). Harvest Capital Strategies had 10.1 million invested in the company at the end of the quarter. Spencer M. Waxman’s Shannon River Fund Management also made a $6 million investment in the stock during the quarter. The following funds were also among the new BLOX investors: Dmitry Balyasny’s Balyasny Asset Management, Matthew Hulsizer’s PEAK6 Capital Management, and Charles Davidson’s Wexford Capital.
How are insiders trading Infoblox Inc (NYSE:BLOX)?
Insider purchases made by high-level executives is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time frame, Infoblox Inc (NYSE:BLOX) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Infoblox Inc (NYSE:BLOX). These stocks are Quad/Graphics, Inc. (NYSE:QUAD), TeleTech Holdings, Inc. (NASDAQ:TTEC), NetSpend Holdings Inc (NASDAQ:NTSP), Moneygram International Inc (NYSE:MGI), and ExlService Holdings, Inc. (NASDAQ:EXLS). This group of stocks are the members of the business services industry and their market caps are similar to BLOX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Quad/Graphics, Inc. (NYSE:QUAD) | 11 | 0 | 1 |
| TeleTech Holdings, Inc. (NASDAQ:TTEC) | 11 | 0 | 0 |
| NetSpend Holdings Inc (NASDAQ:NTSP) | 15 | 0 | 1 |
| Moneygram International Inc (NYSE:MGI) | 10 | 3 | 0 |
| ExlService Holdings, Inc. (NASDAQ:EXLS) | 7 | 0 | 7 |
With the results demonstrated by our studies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Infoblox Inc (NYSE:BLOX) applies perfectly to this mantra.
