SolarWinds Inc (NYSE:SWI): Are Hedge Funds Right About This Stock?

SolarWinds Inc (NYSE:SWI)SolarWinds Inc (NYSE:SWI) was in 19 hedge funds’ portfolio at the end of December. SWI has seen an increase in activity from the world’s largest hedge funds of late. There were 17 hedge funds in our database with SWI positions at the end of the previous quarter.

If you’d ask most investors, hedge funds are viewed as underperforming, outdated financial vehicles of the past. While there are over 8000 funds in operation today, we at Insider Monkey choose to focus on the upper echelon of this club, around 450 funds. It is widely believed that this group oversees the majority of the smart money’s total capital, and by paying attention to their highest performing investments, we have unearthed a few investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per 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 topped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Equally as integral, positive insider trading sentiment is a second way to break down the investments you’re interested in. As the old adage goes: there are a variety of reasons for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the impressive potential of this tactic if shareholders understand what to do (learn more here).

Now, we’re going to take a gander at the latest action surrounding SolarWinds Inc (NYSE:SWI).

How are hedge funds trading SolarWinds Inc (NYSE:SWI)?

At the end of the fourth quarter, a total of 19 of the hedge funds we track were bullish in this stock, a change of 12% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially.

When looking at the hedgies we track, Jim Simons’s Renaissance Technologies had the largest position in SolarWinds Inc (NYSE:SWI), worth close to $73 million, accounting for 0.2% of its total 13F portfolio. The second largest stake is held by Scott McLellan of Marble Arch Investments, with a $52 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Andrew Sandler’s Sandler Capital Management, Richard Driehaus’s Driehaus Capital and Ken Griffin’s Citadel Investment Group.

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Ellington, managed by Mike Vranos, established the most outsized position in SolarWinds Inc (NYSE:SWI). Ellington had 0 million invested in the company at the end of the quarter. Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners also initiated a $0 million position during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Joe DiMenna’s ZWEIG DIMENNA PARTNERS, and Mark A. Nordlicht’s Platinum Management.

How have insiders been trading SolarWinds Inc (NYSE:SWI)?

Insider buying is best served when the company in question has experienced transactions within the past half-year. Over the latest half-year time frame, SolarWinds Inc (NYSE:SWI) has experienced zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s time-tested strategies, retail investors should always pay attention to hedge fund and insider trading sentiment, and SolarWinds Inc (NYSE:SWI) 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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!