This Metric Says You Are Smart to Sell Avid Technology, Inc. (AVID)

Page 1 of 2

To many market players, hedge funds are assumed to be delayed, old investment tools of an era lost to time. Although there are more than 8,000 hedge funds trading today, Insider Monkey aim at the masters of this group, about 525 funds. Analysts calculate that this group controls the majority of the hedge fund industry’s total assets, and by paying attention to their highest performing equity investments, we’ve unsheathed a few investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).

Equally as crucial, positive insider trading sentiment is a second way to analyze the investments you’re interested in. There are lots of motivations for a corporate insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).

Furthermore, we’re going to study the recent info for Avid Technology, Inc. (NASDAQ:AVID).

Avid Technology, Inc. (NASDAQ:AVID)

How have hedgies been trading Avid Technology, Inc. (NASDAQ:AVID)?

At Q2′s end, a total of 10 of the hedge funds we track held long positions in this stock, a change of -9% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their holdings meaningfully.

According to our 13F database, Richard Blum’s Blum Capital Partners had the biggest position in Avid Technology, Inc. (NASDAQ:AVID), worth close to $41.9 million, comprising 6.8% of its total 13F portfolio. Coming in second is Central Square Management, managed by Kelly Cardwell, which held a $8.9 million position; 7.4% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Gregg J. Powers’s Private Capital Management, Chuck Royce’s Royce & Associates and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Because Avid Technology, Inc. (NASDAQ:AVID) has experienced dropping sentiment from the smart money’s best and brightest, it’s easy to see that there exists a select few hedgies that elected to cut their positions entirely at the end of the second quarter. Intriguingly, Paul Tudor Jones’s Tudor Investment Corp sold off the largest stake of all the hedgies we track, valued at about $0.2 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its stock, about $0.1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds at the end of the second quarter.

Insider trading activity in Avid Technology, Inc. (NASDAQ:AVID)

Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has seen transactions within the past half-year. Over the last half-year time frame, Avid Technology, Inc. (NASDAQ:AVID) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Avid Technology, Inc. (NASDAQ:AVID). These stocks are The9 Limited (ADR) (NASDAQ:NCTY), Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD), Rosetta Stone Inc (NYSE:RST), Glu Mobile Inc. (NASDAQ:GLUU), and KongZhong Corporation (ADR) (NASDAQ:KONG). All of these stocks are in the multimedia & graphics software industry and their market caps match AVID’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

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

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

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!