InterXion Holding NV (NYSE:INXN) was in 24 hedge funds’ portfolio at the end of the first quarter of 2013. INXN has experienced a decrease in hedge fund sentiment recently. There were 25 hedge funds in our database with INXN positions at the end of the previous quarter.
To most traders, hedge funds are perceived as worthless, outdated investment vehicles of years past. While there are greater than 8000 funds in operation at the moment, we look at the upper echelon of this group, close to 450 funds. It is estimated that this group oversees the majority of the smart money’s total capital, and by monitoring their best picks, we have found a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).
Just as important, optimistic insider trading activity is another way to break down the stock market universe. Obviously, there are plenty of motivations for an upper level exec to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this tactic if “monkeys” understand what to do (learn more here).
Consequently, it’s important to take a look at the latest action surrounding InterXion Holding NV (NYSE:INXN).
How have hedgies been trading InterXion Holding NV (NYSE:INXN)?
At the end of the first quarter, a total of 24 of the hedge funds we track held long positions in this stock, a change of -4% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.
Of the funds we track, Ricky Sandler’s Eminence Capital had the largest position in InterXion Holding NV (NYSE:INXN), worth close to $62.1 million, accounting for 1.6% of its total 13F portfolio. Sitting at the No. 2 spot is John Lykouretzos of Hoplite Capital Management, with a $49.2 million position; the fund has 1.6% of its 13F portfolio invested in the stock. Other peers that hold long positions include Spencer M. Waxman’s Shannon River Fund Management, D. E. Shaw’s D E Shaw and Thomas E. Claugus’s GMT Capital.
Because InterXion Holding NV (NYSE:INXN) has experienced declining sentiment from the entirety of the hedge funds we track, we can see that there exists a select few money managers that elected to cut their entire stakes heading into Q2. Intriguingly, Ken Griffin’s Citadel Investment Group cut the biggest position of all the hedgies we monitor, comprising close to $18.6 million in stock.. Andrew Immerman and Jeremy Schiffman’s fund, Palestra Capital Management, also sold off its stock, about $6.3 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds heading into Q2.
How are insiders trading InterXion Holding NV (NYSE:INXN)?
Bullish insider trading is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time period, InterXion Holding NV (NYSE:INXN) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out 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). This group of stocks are in the internet information providers industry and their market caps are similar to INXN’s market cap.