Is InterXion Holding NV (NYSE:INXN) the right pick for your portfolio? Hedge funds are becoming less confident. The number of bullish hedge fund bets fell by 5 lately.
To the average investor, there are tons of gauges shareholders can use to analyze stocks. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can beat their index-focused peers by a healthy margin (see just how much).
Just as key, optimistic insider trading activity is another way to break down the world of equities. Obviously, there are plenty of reasons for an executive to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).
With these “truths” under our belt, let’s take a glance at the latest action encompassing InterXion Holding NV (NYSE:INXN).
Hedge fund activity in InterXion Holding NV (NYSE:INXN)
At year’s end, a total of 19 of the hedge funds we track held long positions in this stock, a change of -21% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings significantly.
According to our comprehensive database, Eminence Capital, managed by Ricky Sandler, holds the most valuable position in InterXion Holding NV (NYSE:INXN). Eminence Capital has a $51 million position in the stock, comprising 1.5% of its 13F portfolio. On Eminence Capital’s heels is Hoplite Capital Management, managed by John Lykouretzos, which held a $44 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Spencer M. Waxman’s Shannon River Fund Management, Thomas E. Claugus’s GMT Capital and D. E. Shaw’s D E Shaw.
Judging by the fact that InterXion Holding NV (NYSE:INXN) has experienced declining sentiment from the smart money, we can see that there were a few hedge funds that decided to sell off their entire stakes heading into 2013. It’s worth mentioning that Robert Pohly’s Samlyn Capital sold off the largest investment of the 450+ funds we key on, valued at an estimated $8.8 million in stock., and Charles Clough of Clough Capital Partners was right behind this move, as the fund sold off about $7.7 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 5 funds heading into 2013.
How are insiders trading InterXion Holding NV (NYSE:INXN)?
Insider purchases made by high-level executives is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time frame, InterXion Holding NV (NYSE:INXN) has seen zero unique insiders purchasing, 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 InterXion Holding NV (NYSE:INXN). These stocks are Sohu.com Inc (NASDAQ:SOHU), OpenTable Inc (NASDAQ:OPEN), Yelp Inc (NYSE:YELP), Kayak Software Corp (NASDAQ:KYAK), and Shutterfly, Inc. (NASDAQ:SFLY). All of these stocks are in the internet information providers industry and their market caps resemble INXN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Sohu.com Inc (NASDAQ:SOHU) | 15 | 0 | 1 |
| OpenTable Inc (NASDAQ:OPEN) | 17 | 0 | 4 |
| Yelp Inc (NYSE:YELP) | 9 | 0 | 15 |
| Kayak Software Corp (NASDAQ:KYAK) | 8 | 0 | 0 |
| Shutterfly, Inc. (NASDAQ:SFLY) | 14 | 0 | 9 |
With the results demonstrated by Insider Monkey’s strategies, everyday investors must always pay attention to hedge fund and insider trading sentiment, and InterXion Holding NV (NYSE:INXN) is no exception.
