You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make a proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enabled them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Is MRV Communications, Inc. (NASDAQ:MRVC) a healthy stock for your portfolio? Money managers are betting on the stock. The number of bullish hedge fund bets inched up by 2 lately. MRV Communications, Inc. (NASDAQ:MRVC) was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. There were 2 hedge funds in our database with MRV Communications, Inc. (NASDAQ:MRVC) holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as RadiSys Corporation (NASDAQ:RSYS), Energy XXI Limited (NASDAQ:EXXI), and VAALCO Energy, Inc. (NYSE:EGY) to gather more data points.
In the 21st-century investor’s toolkit, there are tons of formulas shareholders use to value stocks. A couple of the most useful formulas are hedge fund and insider trading indicators. We have shown that, historically, those who follow the best picks of the elite money managers can trounce their index-focused peers by a superb margin (see the details here).
Now, we’re going to take a gander at the latest action regarding MRV Communications, Inc. (NASDAQ:MRVC).
What does the smart money think about MRV Communications, Inc. (NASDAQ:MRVC)?
At the end of the third quarter, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 100% from one quarter earlier. With hedgies’ sentiment swirling, there exist a few noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Raging Capital Management, managed by William C. Martin, holds the biggest position in MRV Communications, Inc. (NASDAQ:MRVC). Raging Capital Management has a $30.6 million position in the stock, comprising 4% of its 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, holding a $0.9 million position; less than 0.1% of its 13F portfolio is allocated to the stock. The remaining members of the smart money that are bullish consist of Bruce Silver’s Silver Capital Management LLC, Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.