SolarWinds Inc (SWI)’s Shares Crumble On Lower Revenues, Guidance

How have hedgies been trading SolarWinds Inc (NYSE:SWI)?

At the end of the first quarter, a total of 24 of the hedge funds tracked by Insider Monkey were long in this stock, a decrease of 4 from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings substantially.

When looking at the hedgies followed by Insider Monkey, Lee Ainslie‘s Maverick Capital had the biggest position in SolarWinds Inc (NYSE:SWI), worth close to $131.3 million in 2.56 million shares, corresponding to 2.1% of its total 13F portfolio. Coming in second was SRS Investment Management, led by Karthik Sarma, holding a $123 million position of 2.40 million shares; 4.9% of its 13F portfolio was allocated to the stock. More hedgies that hold long positions consist of Stephen Mandel’s Lone Pine Capital, Jim Simons’ Renaissance Technologies, and Glenn J. Krevlin’s Glenhill Advisors.

Seeing as SolarWinds Inc (NYSE:SWI) has faced bearish sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of money managers that slashed their entire stakes in the first quarter. Intriguingly, Michael Doheny’s Freshford Capital Management dumped the biggest position of all the hedgies watched by Insider Monkey, valued at an estimated $29.8 million in stock. Eric Bannasch‘s fund, Cadian Capital, also cut its holding loose, about $13.5 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by four funds in the first quarter.

Considering the negative hedge fund sentiment coupled with lower annual guidance and lower-than-expected quarterly results, we don’t recommend buying SolarWinds at this time.

Disclosure: None