Hedge Funds Are Betting On Polycom Inc (PLCM)

Polycom Inc (NASDAQ:PLCM) was in 30 hedge funds’ portfolio at the end of the first quarter of 2013. PLCM shareholders have witnessed an increase in hedge fund sentiment in recent months. There were 25 hedge funds in our database with PLCM positions at the end of the previous quarter.

In today’s marketplace, there are dozens of indicators investors can use to analyze their holdings. A duo of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outpace the market by a healthy margin (see just how much).

Equally as key, optimistic insider trading sentiment is another way to break down the marketplace. There are plenty of stimuli for an executive to get rid of shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this method if investors understand what to do (learn more here).

Keeping this in mind, it’s important to take a glance at the key action surrounding Polycom Inc (NASDAQ:PLCM).

Hedge fund activity in Polycom Inc (NASDAQ:PLCM)

Heading into Q2, a total of 30 of the hedge funds we track were long in this stock, a change of 20% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.

When looking at the hedgies we track, Omega Advisors, managed by Leon Cooperman, holds the most valuable position in Polycom Inc (NASDAQ:PLCM). Omega Advisors has a $108.7 million position in the stock, comprising 1.7% of its 13F portfolio. Sitting at the No. 2 spot is Mason Capital Management, managed by Kenneth Mario Garschina, which held a $51.4 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Other peers that hold long positions include Matthew Knauer and Mina Faltas’s Nokota Management, Cliff Asness’s AQR Capital Management and Malcolm Fairbairn’s Ascend Capital.

Consequently, key hedge funds have been driving this bullishness. Mason Capital Management, managed by Kenneth Mario Garschina, created the most outsized position in Polycom Inc (NASDAQ:PLCM). Mason Capital Management had 51.4 million invested in the company at the end of the quarter. Christopher Lord’s Criterion Capital also made a $13.5 million investment in the stock during the quarter. The other funds with brand new PLCM positions are SAC Subsidiary’s CR Intrinsic Investors, Ken Grossman and Glen Schneider’s SG Capital Management, and Scott Fine and Peter Richards’s Empire Capital Management.

How are insiders trading Polycom Inc (NASDAQ:PLCM)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past half-year. Over the latest half-year time frame, Polycom Inc (NASDAQ:PLCM) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned time-tested strategies, retail investors should always pay attention to hedge fund and insider trading sentiment, and Polycom Inc (NASDAQ:PLCM) is no exception.

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