The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI).
Hedge fund interestn towards MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare MTSI to other stocks including Triumph Group Inc (NYSE:TGI), ExlService Holdings, Inc. (NASDAQ:EXLS), and Evercore Partners Inc. (NYSE:EVR) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
With all of this in mind, we’re going to take a look at the key action surrounding MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI).
What does the smart money think about MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI)?
Heading into the fourth quarter of 2016, a total of 15 funds tracked by Insider Monkey were bullish on MACOM Technology Solutions, unchanged over the quarter. By comparison, 16 hedge funds held shares or bullish call options in MTSI heading into this year. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Matthew A. Weatherbie’s Weatherbie Capital holds the number one position in MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI). Weatherbie Capital has a $26.6 million position in the stock, comprising 3.3% of its 13F portfolio. On Weatherbie Capital’s heels is Paul Marshall and Ian Wace’s Marshall Wace LLP, with a $7.1 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining professional money managers that hold long positions encompass Chuck Royce’s Royce & Associates, Drew Cupps’ Cupps Capital Management, and Ira Unschuld’s Brant Point Investment Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
However, some hedge funds actually cashed in their positions entirely. It’s worth mentioning that Jacob Gottlieb’s Visium Asset Management cashed in the biggest position of all the hedgies studied by Insider Monkey, totaling about $8 million in stock. Ken Griffin’s fund, Citadel Investment Group, also cut its stock, about $3.5 million worth.
Let’s also examine hedge fund activity in other stocks similar to MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI). These stocks are Triumph Group Inc (NYSE:TGI), ExlService Holdings, Inc. (NASDAQ:EXLS), Evercore Partners Inc. (NYSE:EVR), and Enbridge Energy Management, L.L.C. (NYSE:EEQ). This group of stocks’ market valuations resemble MTSI’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 13 funds with bullish positions and the average amount invested in these stocks was $101 million. That figure was $56 million in MTSI’s case. Evercore Partners Inc. (NYSE:EVR) is the most popular stock in this table with 19 funds holding shares. On the other hand Enbridge Energy Management, L.L.C. (NYSE:EEQ) is the least popular one with only six bullish hedge fund positions. MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Evercore Partners Inc. (NYSE:EVR) might be a better candidate to consider taking a long position in.