Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Micron and Anadarko Petroleum, have not done well during the last 12 months ending in October due to various reasons. Nevertheless, the data show elite investors’ consensus picks have done well on average. The top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% during the last four quarters ending in October and sixty three percent of these 30 stocks outperformed the market. S&P 500 Index returned only 5.2% during the same period and less than 49% of its constituents managed to beat this return. Because their consensus picks have done well, we pay attention to what elite funds think before doing extensive research on a stock. In this article, we take a closer look at Ciena Corporation (NYSE:CIEN) from the perspective of those elite funds.
Is Ciena Corporation (NYSE:CIEN) a healthy stock for your portfolio? Investors who are in the know are getting more optimistic. The number of long hedge fund bets rose by 2 lately. CIEN was in 33 hedge funds’ portfolios at the end of the third quarter of 2015. There were 31 hedge funds in our database with CIEN positions 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 Dyax Corp. (NASDAQ:DYAX), G-III Apparel Group, Ltd. (NASDAQ:GIII), and Mercury General Corporation (NYSE:MCY) to gather more data points.
Now, let’s take a look at the new action encompassing Ciena Corporation (NYSE:CIEN).
How are hedge funds trading Ciena Corporation (NYSE:CIEN)?
Heading into Q4, a total of 33 of the hedge funds tracked by Insider Monkey were long this stock, a change of 6% from the second quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Israel Englander’s Millennium Management has the most valuable position in Ciena Corporation (NYSE:CIEN), worth close to $39.2 million, amounting to 0.1% of its total 13F portfolio. Coming in second is Joel Greenblatt of Gotham Asset Management, with a $32.2 million position; 0.3% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors that are bullish consist of Columbus Circle Investors, Kerr Neilson’s Platinum Asset Management and Glenn Russell Dubin’s Highbridge Capital Management.