Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Smart Money Like These Mid-Cap Tech Stocks

After institutional investors had submitted their 13F filings with the U.S. Securities and Exchange Commission for the quarter ended June 30, we analyzed the equity portfolios of a pool of over 700 funds. As usual, these investors focused on large-cap companies, which ranked among the most popular. However, these stocks are more efficiently priced and don’t provide a lot of upside for a smaller investor. On the other hand, mid-cap stocks can usually offer more opportunities and, with this in mind, we have compiled a list of five mid-cap tech stocks that attracted the attention of hedge funds during the second quarter.

data storage, sandisk

We pay attention to hedge funds’ moves because our research has shown that hedge funds are extremely talented at picking stocks on the long side of their portfolios. It is true that hedge fund investors have been underperforming the market in recent years. However, this was mainly because hedge funds’ short stock picks lost a ton of money during the bull market that started in March 2009. Hedge fund investors also paid an arm and a leg for the services that they received. We have been tracking the performance of hedge funds’ 15 most popular small-cap stock picks in real time since the end of August 2012. These stocks have returned 123% since then and outperformed the S&P 500 Index by around 65 percentage points (see the details here). That’s why we believe it is important to pay attention to hedge fund sentiment; we also don’t like paying huge fees.

5. Autodesk, Inc. (NASDAQ:ADSK)

Investors with Long Positions (as of June 30): 45

Aggregate Value of Investors’ Holdings (as of June 30): $2.25 Billion

To begin with, let’s have a look at Autodesk, Inc. (NASDAQ:ADSK), a San Rafael, California-based software corporation, in which the number of investors with long positions declined by three during the second quarter, while the aggregate value of their positions slid from $2.52 billion at the end of March. The company recently announced the integration of its 3D printing experience in Windows 10, expanding the application’s possible reach. Moreover, Autodesk, Inc. (NASDAQ:ADSK) is currently making deeper forays into the gaming industry by creating Stingray, a gaming engine and real-time rendering application program. Nevertheless, the company’s return on equity has slumped by 35% on the year to around 3.20% as of April 30, which is not a good sign for the software corporation. Soroban Capital Partners, headed by Eric W. Mandelblatt, is the largest shareholder of Autodesk among the funds we track, holding 10.34 million shares valued at $517.65 million, followed by billionaire Stephen Mandel’s Lone Pine Capital with 6.16 million shares worth $308.41 million as of the end of June.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.