At Insider Monkey, we pore over the filings of more than 700 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not MaxLinear, Inc. (NYSE:MXL) makes for a good investment right now.
MaxLinear, Inc. investors should be aware of an increase in enthusiasm from smart money in recent months. MXL was in 24 hedge funds’ portfolios at the end of the third quarter of 2015. There were 23 hedge funds in our database with MXL 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 Quotient Technology Inc (NYSE:COUP), Heartland Financial USA Inc (NASDAQ:HTLF), and P.H. Glatfelter Company (NYSE:GLT) to gather more data points.
Follow Maxlinear Inc (NYSE:MXL)
Follow Maxlinear Inc (NYSE:MXL)
To the average investor there are plenty of signals market participants put to use to appraise stocks. Two of the most underrated signals are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can outpace their index-focused peers by a superb amount (see the details here).
With all of this in mind, we’re going to view the latest action surrounding MaxLinear, Inc. (NYSE:MXL).
Hedge fund activity in MaxLinear, Inc. (NYSE:MXL)
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from the second quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, William C. Martin’s Raging Capital Management has the biggest position in MaxLinear, Inc. (NYSE:MXL), worth close to $33.5 million, comprising 4.4% of its total 13F portfolio. The second most bullish fund manager is Soros Fund Management, managed by George Soros, which holds a $31.9 million position; 0.5% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism consist of Chuck Royce’s Royce & Associates, Alex Sacerdote’s Whale Rock Capital Management and Brett Hendrickson’s Nokomis Capital.
As one would reasonably expect, some big names have been driving this bullishness. Columbus Circle Investors, managed by Clifford Fox, initiated the biggest position in MaxLinear, Inc. (NYSE:MXL). Columbus Circle Investors had $6.8 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated a $2.8 million position during the quarter. The only other fund with a brand new MXL position is Scott Fine and Peter Richards’s Empire Capital Management.
Let’s check out hedge fund activity in other stocks similar to MaxLinear, Inc. (NYSE:MXL). We will take a look at Quotient Technology Inc (NYSE:COUP), Heartland Financial USA Inc (NASDAQ:HTLF), P.H. Glatfelter Company (NYSE:GLT), and Speedway Motorsports, Inc. (NYSE:TRK). All of these stocks’ market caps match MXL’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| COUP | 7 | 32237 | -4 |
| HTLF | 8 | 11236 | -1 |
| GLT | 12 | 11318 | 3 |
| TRK | 15 | 17495 | 5 |
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $177 million in MXL’s case. Speedway Motorsports, Inc. (NYSE:TRK) is the most popular stock in this table. On the other hand Quotient Technology Inc (NYSE:COUP) is the least popular one. In comparison, MaxLinear, Inc. (NYSE:MXL) with 24 bullish hedge fund positions is more popular among hedge funds. Considering that hedge funds are collectively most fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
