Hedge Funds Are Betting On Calix Inc (CALX)

What’s a smart Calix Inc (NYSE:CALX) investor to do?

To many of your peers, hedge funds are seen as bloated, old financial tools of a period lost to current times. Although there are In excess of 8,000 hedge funds trading in present day, Insider Monkey focuses on the bigwigs of this group, close to 525 funds. Analysts calculate that this group has its hands on the majority of the hedge fund industry’s total capital, and by tracking their highest performing stock picks, we’ve found a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outperformed 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 33 percentage points in 11 months (see all of our picks from August).

Equally as crucial, bullish insider trading sentiment is a second way to look at the marketplace. Just as you’d expect, there are a variety of stimuli for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the market-beating potential of this strategy if shareholders know what to do (learn more here).

Keeping this in mind, let’s study the newest info about Calix Inc (NYSE:CALX).

Hedge fund activity in Calix Inc (NYSE:CALX)

At Q2’s end, a total of 16 of the hedge funds we track were long in this stock, a change of 23% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully.

According to our 13F database, Benjamin J Taylor’s Sophrosyne Capital had the largest position in Calix Inc (NYSE:CALX), worth close to $11 million, comprising 8.6% of its total 13F portfolio. The second largest stake is held by Mark Broach of Manatuck Hill Partners, with a $5.3 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Peter A. Wright’s P.A.W. CAPITAL PARTNERS, Israel Englander’s Millennium Management and Cliff Asness’s AQR Capital Management.

With a general bullishness amongst the titans, particular hedge funds were breaking ground themselves. Sophrosyne Capital, managed by Benjamin J Taylor, initiated the biggest position in Calix Inc (NYSE:CALX). Sophrosyne Capital had 11 million invested in the company at the end of the quarter. Mark Broach’s Manatuck Hill Partners also made a $5.3 million investment in the stock during the quarter. The following funds were also among the new CALX investors: Peter A. Wright’s P.A.W. CAPITAL PARTNERS, Israel Englander’s Millennium Management, and Cliff Asness’s AQR Capital Management.

Insider trading activity in Calix Inc (NYSE:CALX)

Insider buying is at its handiest when the primary stock in question has experienced transactions within the past half-year. Over the last half-year time frame, Calix Inc (NYSE:CALX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Calix Inc (NYSE:CALX). These stocks are 8×8, Inc. (NASDAQ:EGHT), Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), CalAmp Corp. (NASDAQ:CAMP), Allot Communications Ltd. (NASDAQ:ALLT), and Comtech Telecomm. Corp. (NASDAQ:CMTL). This group of stocks belong to the communication equipment industry and their market caps are similar to CALX’s market cap.

Using the returns shown by Insider Monkey’s strategies, average investors must always track hedge fund and insider trading sentiment, and Calix Inc (NYSE:CALX) shareholders fit into this picture quite nicely.

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