The government requires hedge funds and wealthy investors with over a certain portfolio size to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings discloses the funds’ positions on September 30. We at Insider Monkey have made an extensive database of more than 700 of those elite funds and prominent investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Intersil Corp (NASDAQ:ISIL) based on those filings.
Is Intersil Corp (NASDAQ:ISIL) a bargain? Investors who are in the know are becoming more confident. The number of long hedge fund bets inched up by 2 in recent months. ISIL was in 14 hedge funds’ portfolios at the end of the third quarter of 2015. There were 12 hedge funds in our database with ISIL positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Chesapeake Lodging Trust (NYSE:CHSP), Monogram Residential Trust Inc (NYSE:MORE), and CommVault Systems, Inc. (NASDAQ:CVLT) to gather more data points.
Follow Intersil Corp (NASDAQ:ISIL)
Follow Intersil Corp (NASDAQ:ISIL)
In the 21st century investor’s toolkit there are a multitude of signals shareholders can use to evaluate publicly traded companies. Two of the best signals are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the top money managers can trounce the broader indices by a healthy margin (see the details here).
Keeping this in mind, we’re going to go over the recent action encompassing Intersil Corp (NASDAQ:ISIL).
What does the smart money think about Intersil Corp (NASDAQ:ISIL)?
At the end of the third quarter, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of 17% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Chuck Royce’s Royce & Associates has the most valuable position in Intersil Corp (NASDAQ:ISIL), worth close to $14.4 million, corresponding to 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which holds a $8 million position; less than 0.1% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors that are bullish include Ken Hahn’s Quentec Asset Management, Israel Englander’s Millennium Management and Mark Coe’s Coe Capital Management.
As one would reasonably expect, key hedge funds were breaking ground themselves. Quentec Asset Management, managed by Ken Hahn, created the most valuable position in Intersil Corp (NASDAQ:ISIL). Quentec Asset Management had $3.6 million invested in the company at the end of the quarter. Mark Coe’s Coe Capital Management also made a $3 million investment in the stock during the quarter. The other funds with new positions in the stock are Daniel S. Och’s OZ Management, Jim Simons’s Renaissance Technologies, and Ray Dalio’s Bridgewater Associates.
Let’s check out hedge fund activity in other stocks similar to Intersil Corp (NASDAQ:ISIL). We will take a look at Chesapeake Lodging Trust (NYSE:CHSP), Monogram Residential Trust Inc (NYSE:MORE), CommVault Systems, Inc. (NASDAQ:CVLT), and Chambers Street Properties (NYSE:CSG). This group of stocks’ market values are similar to ISIL’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CHSP | 12 | 26853 | -1 |
| MORE | 7 | 15067 | -2 |
| CVLT | 22 | 345515 | 0 |
| CSG | 20 | 128905 | 6 |
As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $129 million. That figure was $42 million in ISIL’s case. CommVault Systems, Inc. (NASDAQ:CVLT) is the most popular stock in this table. On the other hand Monogram Residential Trust Inc (NYSE:MORE) is the least popular one with only 7 bullish hedge fund positions. Intersil Corp (NASDAQ:ISIL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CVLT might be a better candidate to consider a long position.
