This Metric Says You Are Smart to Buy Emulex Corporation (ELX)

Page 1 of 2

Is Emulex Corporation (NYSE:ELX) a buy here? Prominent investors are getting more bullish. The number of long hedge fund positions advanced by 2 in recent months.

Emulex Corporation (NYSE:ELX)

In the 21st century investor’s toolkit, there are plenty of metrics market participants can use to monitor stocks. A pair of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform their index-focused peers by a very impressive margin (see just how much).

Equally as important, bullish insider trading sentiment is another way to break down the stock market universe. There are a number of reasons for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this method if you understand where to look (learn more here).

Consequently, it’s important to take a look at the recent action surrounding Emulex Corporation (NYSE:ELX).

What have hedge funds been doing with Emulex Corporation (NYSE:ELX)?

Heading into Q2, a total of 21 of the hedge funds we track were bullish in this stock, a change of 11% from the first quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, Elliott Management, managed by Paul Singer, holds the biggest position in Emulex Corporation (NYSE:ELX). Elliott Management has a $58.3 million position in the stock, comprising 1.2% of its 13F portfolio. Sitting at the No. 2 spot is Altai Capital, managed by Rishi Bajaj, Toby Symonds, and Steve Tesoriere, which held a $31.7 million position; the fund has 12.3% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Youlia Miteva’s Proxima Capital Management, Chuck Royce’s Royce & Associates and Matthew Knauer and Mina Faltas’s Nokota Management.

As aggregate interest increased, some big names have jumped into Emulex Corporation (NYSE:ELX) headfirst. Freshford Capital Management, managed by Michael Doheny, initiated the biggest position in Emulex Corporation (NYSE:ELX). Freshford Capital Management had 3.3 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also made a $2.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Ken Gray and Steve Walsh’s Bryn Mawr Capital, and Matthew Hulsizer’s PEAK6 Capital Management.

What do corporate executives and insiders think about Emulex Corporation (NYSE:ELX)?

Bullish insider trading is particularly usable when the company in focus has experienced transactions within the past half-year. Over the last 180-day time frame, Emulex Corporation (NYSE:ELX) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Emulex Corporation (NYSE:ELX). These stocks are STEC, Inc. (NASDAQ:STEC), Fusion-IO, Inc. (NYSE:FIO), Datalink Corporation (NASDAQ:DTLK), Xyratex Ltd. (NASDAQ:XRTX), and Quantum Corp (NYSE:QTM). This group of stocks are the members of the data storage devices industry and their market caps match ELX’s market cap.

Page 1 of 2
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

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

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

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!