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

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.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

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

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

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!