Is Yandex NV (NASDAQ:YNDX) undervalued? Money managers are betting on the stock. The number of long hedge fund positions rose by 2 lately.
According to most traders, hedge funds are assumed to be unimportant, old investment tools of the past. While there are over 8000 funds with their doors open at present, we at Insider Monkey hone in on the moguls of this group, about 450 funds. Most estimates calculate that this group oversees the majority of the hedge fund industry’s total capital, and by monitoring their top investments, we have discovered a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year 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 outpaced the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).
Equally as integral, positive insider trading sentiment is another way to parse down the marketplace. As the old adage goes: there are plenty of motivations for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this method if “monkeys” understand where to look (learn more here).
Keeping this in mind, we’re going to take a peek at the key action encompassing Yandex NV (NASDAQ:YNDX).
Hedge fund activity in Yandex NV (NASDAQ:YNDX)
Heading into Q2, a total of 23 of the hedge funds we track held long positions in this stock, a change of 10% from the first quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Egerton Capital Limited, managed by John Armitage, holds the largest position in Yandex NV (NASDAQ:YNDX). Egerton Capital Limited has a $83.9 million position in the stock, comprising 2.1% of its 13F portfolio. Coming in second is Philippe Laffont of Coatue Management, with a $77 million position; 1% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Rob Citrone’s Discovery Capital Management, Dinakar Singh’s TPG-AXON Management LP and Bain Capital’s Brookside Capital.
Consequently, specific money managers were leading the bulls’ herd. Coatue Management, managed by Philippe Laffont, assembled the most valuable position in Yandex NV (NASDAQ:YNDX). Coatue Management had 77 million invested in the company at the end of the quarter. Eric Mindich’s Eton Park Capital also made a $46.2 million investment in the stock during the quarter. The other funds with brand new YNDX positions are Stephen Mandel’s Lone Pine Capital, Cliff Asness’s AQR Capital Management, and Jeffrey Jon Berney’s TriOaks Capital Management.
How are insiders trading Yandex NV (NASDAQ:YNDX)?
Insider purchases made by high-level executives is particularly usable when the company in focus has seen transactions within the past six months. Over the last six-month time frame, Yandex NV (NASDAQ:YNDX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Yandex NV (NASDAQ:YNDX). These stocks are LinkedIn Corp (NYSE:LNKD), IAC/InterActiveCorp (NASDAQ:IACI), Groupon Inc (NASDAQ:GRPN), Akamai Technologies, Inc. (NASDAQ:AKAM), and Tripadvisor Inc (NASDAQ:TRIP). This group of stocks are the members of the internet information providers industry and their market caps are closest to YNDX’s market cap.