Here is What Hedge Funds Think About Colfax Corp (NYSE:CFX)

Colfax Corp (NYSE:CFX) was in 22 hedge funds’ portfolio at the end of December. CFX has experienced a decrease in activity from the world’s largest hedge funds lately. There were 23 hedge funds in our database with CFX positions at the end of the previous quarter.

Colfax Corp (NYSE:CFX)

In the financial world, there are a multitude of indicators shareholders can use to analyze publicly traded companies. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can outclass the market by a superb margin (see just how much).

Just as beneficial, positive insider trading sentiment is a second way to break down the financial markets. There are a variety of incentives for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would buy. Various empirical studies have demonstrated the valuable potential of this method if investors know what to do (learn more here).

Now, we’re going to take a look at the recent action encompassing Colfax Corp (NYSE:CFX).

What have hedge funds been doing with Colfax Corp (NYSE:CFX)?

In preparation for this year, a total of 22 of the hedge funds we track were long in this stock, a change of -4% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.

When looking at the hedgies we track, Blue Ridge Capital, managed by John Griffin, holds the largest position in Colfax Corp (NYSE:CFX). Blue Ridge Capital has a $217 million position in the stock, comprising 3% of its 13F portfolio. Sitting at the No. 2 spot is Stephen Mandel of Lone Pine Capital, with a $140 million position; 1.3% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Andreas Halvorsen’s Viking Global, Charles Akre’s Akre Capital Management and Tom Gayner’s Markel Gayner Asset Management.

Seeing as Colfax Corp (NYSE:CFX) has witnessed a declination in interest from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of funds who were dropping their positions entirely at the end of the year. At the top of the heap, Alec Litowitz and Ross Laser’s Magnetar Capital cut the largest investment of all the hedgies we monitor, valued at close to $25 million in stock.. Meryl Witmer’s fund, Eagle Value Partners, also dumped its stock, about $5 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds at the end of the year.

What do corporate executives and insiders think about Colfax Corp (NYSE:CFX)?

Insider buying is particularly usable when the company in question has seen transactions within the past six months. Over the latest six-month time period, Colfax Corp (NYSE:CFX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results shown by Insider Monkey’s research, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Colfax Corp (NYSE:CFX) shareholders fit into this picture quite nicely.

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