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Informatica Corporation (NASDAQ:INFA): Insiders Are Buying, Should You?

Informatica Corporation (NASDAQ:INFA) was in 27 hedge funds’ portfolio at the end of the fourth quarter of 2012. INFA has experienced an increase in hedge fund sentiment of late. There were 22 hedge funds in our database with INFA holdings at the end of the previous quarter.

To the average investor, there are dozens of methods shareholders can use to track their holdings. Some of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outclass the market by a superb margin (see just how much).

Equally as integral, bullish insider trading sentiment is another way to break down the stock market universe. Obviously, there are a number of stimuli for an upper level exec to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this method if piggybackers know what to do (learn more here).

Now, it’s important to take a gander at the latest action surrounding Informatica Corporation (NASDAQ:INFA).

How have hedgies been trading Informatica Corporation (NASDAQ:INFA)?

Heading into 2013, a total of 27 of the hedge funds we track held long positions in this stock, a change of 23% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Coatue Management, managed by Philippe Laffont, holds the most valuable position in Informatica Corporation (NASDAQ:INFA). Coatue Management has a $137 million position in the stock, comprising 2.3% of its 13F portfolio. On Coatue Management’s heels is Eric Bannasch of Cadian Capital, with a $58 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Stephen Mandel’s Lone Pine Capital, Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management and Christopher MedlockáJames’s Partner Fund Management.

Now, key hedge funds were leading the bulls’ herd. Cadian Capital, managed by Eric Bannasch, established the biggest position in Informatica Corporation (NASDAQ:INFA). Cadian Capital had 58 million invested in the company at the end of the quarter. Stephen Mandel’s Lone Pine Capital also made a $57 million investment in the stock during the quarter. The other funds with brand new INFA positions are Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management, Christopher MedlockáJames’s Partner Fund Management, and Jim Simons’s Renaissance Technologies.

What do corporate executives and insiders think about Informatica Corporation (NASDAQ:INFA)?

Insider buying is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time period, Informatica Corporation (NASDAQ:INFA) has experienced 5 unique insiders buying, and 7 insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s research, everyday investors must always pay attention to hedge fund and insider trading activity, and Informatica Corporation (NASDAQ:INFA) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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