Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. What do these smart investors think about Imation Corp. (NYSE:IMN)?
Is Imation Corp. (NYSE:IMN) a buy right now? Prominent investors are taking a pessimistic view. The number of bullish hedge fund positions retreated by 1 lately. IMN was in 9 hedge funds’ portfolios at the end of September. There were 10 hedge funds in our database with IMN holdings 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 Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS), Conatus Pharmaceuticals Inc (NASDAQ:CNAT), and Alliqua Biomedical Inc (NASDAQ:ALQA) to gather more data points.
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In the financial world, there are plenty of formulas shareholders can use to appraise their holdings. A duo of the most useful formulas are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best money managers can beat the market by a significant margin (see the details here).
Now, we’re going to analyze the latest action regarding Imation Corp. (NYSE:IMN).
How are hedge funds trading Imation Corp. (NYSE:IMN)?
At the end of the third quarter, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -10% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Gregg J. Powers’ Private Capital Management has the largest position in Imation Corp. (NYSE:IMN), worth close to $7.6 million, amounting to 0.9% of its total 13F portfolio. Sitting at the No. 2 spot is Clinton Group, managed by George Hall, which holds a $3.6 million position; 0.3% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors with similar optimism contain Jim Simons’ Renaissance Technologies, D. E. Shaw’s D E Shaw and John Overdeck and David Siegel’s Two Sigma Advisors.
Since Imation Corp. (NYSE:IMN) has faced bearish sentiment from the smart money, we can see that there were a few hedgies that decided to sell off their positions entirely by the end of the third quarter. It’s worth mentioning that Israel Englander’s Millennium Management said goodbye to the largest position of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $0.2 million in stock. Chao Ku’s fund, Nine Chapters Capital Management, also dropped its stock, about $0.1 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 1 funds by the end of the third quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Imation Corp. (NYSE:IMN) but similarly valued. These stocks are Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS), Conatus Pharmaceuticals Inc (NASDAQ:CNAT), Alliqua Biomedical Inc (NASDAQ:ALQA), and YuMe Inc (NYSE:YUME). All of these stocks’ market caps are closest to IMN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EVBS | 5 | 8781 | 1 |
| CNAT | 10 | 11657 | 1 |
| ALQA | 9 | 17063 | 0 |
| YUME | 5 | 2162 | -4 |
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $28 million in IMN’s case. Conatus Pharmaceuticals Inc (NASDAQ:CNAT) is the most popular stock in this table. On the other hand Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS) is the least popular one with only 5 bullish hedge fund positions. Imation Corp. (NYSE:IMN) 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 CNAT might be a better candidate to consider a long position.
