Infinera Corp. (NASDAQ:INFN) was in 8 hedge funds’ portfolio at the end of the first quarter of 2013. INFN investors should pay attention to a decrease in enthusiasm from smart money of late. There were 9 hedge funds in our database with INFN positions at the end of the previous quarter.
In the financial world, there are tons of methods shareholders can use to track stocks. Two of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outperform the S&P 500 by a solid margin (see just how much).
Just as important, positive insider trading sentiment is a second way to break down the marketplace. Obviously, there are many reasons for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if “monkeys” know where to look (learn more here).
With these “truths” under our belt, it’s important to take a look at the recent action surrounding Infinera Corp. (NASDAQ:INFN).
Hedge fund activity in Infinera Corp. (NASDAQ:INFN)
Heading into Q2, a total of 8 of the hedge funds we track held long positions in this stock, a change of -11% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
Of the funds we track, Platinum Asset Management, managed by Kerr Neilson, holds the biggest position in Infinera Corp. (NASDAQ:INFN). Platinum Asset Management has a $48.5 million position in the stock, comprising 1.1% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $11.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Brian Ashford-Russell and Tim Woolley’s Polar Capital, Ken Griffin’s Citadel Investment Group and Ken Griffin’s Citadel Investment Group.
Since Infinera Corp. (NASDAQ:INFN) has witnessed declining sentiment from hedge fund managers, we can see that there was a specific group of money managers who were dropping their positions entirely at the end of the first quarter. At the top of the heap, Steven Cohen’s SAC Capital Advisors sold off the biggest investment of all the hedgies we key on, worth about $0.1 million in stock. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 1 funds at the end of the first quarter.
What have insiders been doing with Infinera Corp. (NASDAQ:INFN)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has seen transactions within the past six months. Over the last half-year time period, Infinera Corp. (NASDAQ:INFN) has seen 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Infinera Corp. (NASDAQ:INFN). These stocks are ADTRAN, Inc. (NASDAQ:ADTN), Vocera Communications Inc (NYSE:VCRA), Harmonic Inc (NASDAQ:HLIT), Sonus Networks, Inc. (NASDAQ:SONS), and Tellabs, Inc. (NASDAQ:TLAB). This group of stocks are the members of the communication equipment industry and their market caps match INFN’s market cap.