Infoblox Inc (NYSE:BLOX) investors should pay attention to an increase in hedge fund interest recently.
In the financial world, there are many methods market participants can use to watch their holdings. Some of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outclass the broader indices by a significant margin (see just how much).
Just as important, optimistic insider trading activity is another way to parse down the world of equities. Obviously, there are plenty of motivations for an executive to downsize shares of his or her company, but only one, very obvious reason why they would buy. Several empirical studies have demonstrated the impressive potential of this strategy if piggybackers understand what to do (learn more here).
With these “truths” under our belt, we’re going to take a look at the latest action surrounding Infoblox Inc (NYSE:BLOX).
How are hedge funds trading Infoblox Inc (NYSE:BLOX)?
Heading into 2013, a total of 12 of the hedge funds we track were long in this stock, a change of 140% from the third quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings significantly.
Of the funds we track, Polar Capital, managed by Brian Ashford-Russell and Tim Woolley, holds the biggest position in Infoblox Inc (NYSE:BLOX). Polar Capital has a $9 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is Invicta Capital Management, managed by Gregory A. Weaver, which held a $8 million position; the fund has 3.4% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Drew Cupps’s Cupps Capital Management, D. E. Shaw’s D E Shaw and Eric Bannasch’s Cadian Capital.
As one would reasonably expect, specific money managers have jumped into Infoblox Inc (NYSE:BLOX) headfirst. Invicta Capital Management, managed by Gregory A. Weaver, established the most valuable position in Infoblox Inc (NYSE:BLOX). Invicta Capital Management had 8 million invested in the company at the end of the quarter. Drew Cupps’s Cupps Capital Management also initiated a $4 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management, and Mike Vranos’s Ellington.
What have insiders been doing with Infoblox Inc (NYSE:BLOX)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time frame, Infoblox Inc (NYSE:BLOX) has experienced zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Infoblox Inc (NYSE:BLOX). These stocks are Quad/Graphics, Inc. (NYSE:QUAD), TeleTech Holdings, Inc. (NASDAQ:TTEC), NetSpend Holdings Inc (NASDAQ:NTSP), Moneygram International Inc (NYSE:MGI), and ExlService Holdings, Inc. (NASDAQ:EXLS). This group of stocks are the members of the business services industry and their market caps are closest to BLOX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Quad/Graphics, Inc. (NYSE:QUAD)||10||0||1|
|TeleTech Holdings, Inc. (NASDAQ:TTEC)||9||0||0|
|NetSpend Holdings Inc (NASDAQ:NTSP)||7||0||3|
|Moneygram International Inc (NYSE:MGI)||9||3||0|
|ExlService Holdings, Inc. (NASDAQ:EXLS)||5||0||6|
With the returns shown by Insider Monkey’s research, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Infoblox Inc (NYSE:BLOX) is an important part of this process.
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