Hedge Funds Are Selling Motorola Solutions Inc (MSI)

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If you were to ask many traders, hedge funds are viewed as delayed, outdated investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation in present day, Insider Monkey aim at the masters of this group, about 525 funds. Analysts calculate that this group oversees the majority of all hedge funds’ total assets, and by tracking their highest quality picks, we’ve formulated a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outperformed 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 outclassed the S&P 500 index by 33 percentage points in 11 months (find the details here).

Equally as necessary, positive insider trading activity is another way to look at the financial markets. Just as you’d expect, there are many stimuli for an insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this tactic if shareholders understand what to do (learn more here).

What’s more, let’s discuss the recent info about Motorola Solutions Inc (NYSE:MSI).

Hedge fund activity in Motorola Solutions Inc (NYSE:MSI)

At the end of the second quarter, a total of 33 of the hedge funds we track were long in this stock, a change of -15% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings meaningfully.

Motorola Solutions Inc (NYSE:MSI)According to our 13F database, ValueAct Capital, managed by Jeffrey Ubben, holds the largest position in Motorola Solutions Inc (NYSE:MSI). ValueAct Capital has a $1.6688 billion position in the stock, comprising 17.1% of its 13F portfolio. The second largest stake is held by Jeffrey Tannenbaum of Fir Tree, with a $464.8 million position; the fund has 6.4% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include William B. Gray’s Orbis Investment Management, David Cohen and Harold Levy’s Iridian Asset Management and Leon Cooperman’s Omega Advisors.

Due to the fact Motorola Solutions Inc (NYSE:MSI) has witnessed a fall in interest from the top-tier hedge fund industry, it’s safe to say that there were a few funds that decided to sell off their positions entirely at the end of the second quarter. At the top of the heap, Andreas Halvorsen’s Viking Global dumped the largest stake of the 450+ funds we key on, comprising about $110.2 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $53.8 million worth. These moves are important to note, as total hedge fund interest was cut by 6 funds at the end of the second quarter.

What do corporate executives and insiders think about Motorola Solutions Inc (NYSE:MSI)?

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 latest 180-day time frame, Motorola Solutions Inc (NYSE:MSI) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Motorola Solutions Inc (NYSE:MSI). These stocks are JDS Uniphase Corp (NASDAQ:JDSU), Echostar Corporation (NASDAQ:SATS), Harris Corporation (NYSE:HRS), Ericsson (ADR) (NASDAQ:ERIC), and Nokia Corporation (ADR) (NYSE:NOK). This group of stocks are in the communication equipment industry and their market caps are closest to MSI’s market cap.

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