Is Equinix Inc (EQIX) Going to Burn These Hedge Funds?

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Equinix Inc (NASDAQ:EQIX) was in 71 hedge funds’ portfolio at the end of March. EQIX has experienced an increase in hedge fund interest recently. There were 66 hedge funds in our database with EQIX holdings at the end of the previous quarter.

In today’s marketplace, there are plenty of metrics shareholders can use to watch the equity markets. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outperform the S&P 500 by a significant margin (see just how much).

Equinix Inc (NASDAQ:EQIX)

Just as integral, optimistic insider trading activity is another way to break down the stock market universe. Obviously, there are many stimuli for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this method if “monkeys” know where to look (learn more here).

Keeping this in mind, it’s important to take a glance at the key action encompassing Equinix Inc (NASDAQ:EQIX).

How have hedgies been trading Equinix Inc (NASDAQ:EQIX)?

At Q1’s end, a total of 71 of the hedge funds we track were bullish in this stock, a change of 8% from the first quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes meaningfully.

According to our comprehensive database, Philippe Laffont’s Coatue Management had the biggest position in Equinix Inc (NASDAQ:EQIX), worth close to $950.5 million, comprising 12% of its total 13F portfolio. On Coatue Management’s heels is Lone Pine Capital, managed by Stephen Mandel, which held a $496.1 million position; the fund has 2.6% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include John Paulson’s Paulson & Co, Daniel S. Och’s OZ Management and Jeffrey Tannenbaum’s Fir Tree.

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. JAT Capital Management, managed by John Thaler, initiated the most outsized call position in Equinix Inc (NASDAQ:EQIX). JAT Capital Management had 184.4 million invested in the company at the end of the quarter. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital also initiated a $47.5 million position during the quarter. The other funds with new positions in the stock are Bruce Kovner’s Caxton Associates LP, Keith Meister’s Corvex Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

How have insiders been trading Equinix Inc (NASDAQ:EQIX)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past half-year. Over the last 180-day time period, Equinix Inc (NASDAQ:EQIX) has seen zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Equinix Inc (NASDAQ:EQIX). These stocks are The Ultimate Software Group, Inc. (NASDAQ:ULTI), SINA Corp (NASDAQ:SINA), NetEase, Inc (ADR) (NASDAQ:NTES), and CGI Group Inc. (USA) (NYSE:GIB). All of these stocks are in the internet software & services industry and their market caps are similar to EQIX’s market cap.

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