The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31 holdings, data that is available nowhere else. Should you consider A10 Networks Inc (NYSE:ATEN) for your portfolio? We'll look to this invaluable collective wisdom for the answer.
To most investors, hedge funds are assumed to be worthless, old investment tools of years past. While there are greater than 8000 funds trading at present, We hone in on the aristocrats of this group, approximately 750 funds. It is estimated that this group of investors orchestrate most of the smart money's total asset base, and by tracking their inimitable equity investments, Insider Monkey has determined a few investment strategies that have historically outpaced the broader indices. Insider Monkey's flagship hedge fund strategy outstripped the S&P 500 index by around 5 percentage points a year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in our latest quarterly update and they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year).
Let's review the latest hedge fund action surrounding A10 Networks Inc (NYSE:ATEN).
Hedge fund activity in A10 Networks Inc (NYSE:ATEN)
At the end of the first quarter, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the fourth quarter of 2018. By comparison, 13 hedge funds held shares or bullish call options in ATEN a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Eric Singer's VIEX Capital Advisors has the number one position in A10 Networks Inc (NYSE:ATEN), worth close to $29.2 million, accounting for 25.9% of its total 13F portfolio. Coming in second is Steven Baughman of Divisar Capital, with a $18.1 million position; 5.9% of its 13F portfolio is allocated to the company. Other professional money managers that hold long positions contain Jim Simons's Renaissance Technologies, Chuck Royce's Royce & Associates and Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital.
Now, some big names were breaking ground themselves. Element Capital Management, managed by Jeffrey Talpins, assembled the biggest position in A10 Networks Inc (NYSE:ATEN). Element Capital Management had $0.2 million invested in the company at the end of the quarter.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as A10 Networks Inc (NYSE:ATEN) but similarly valued. We will take a look at AVROBIO, Inc. (NASDAQ:AVRO), Team, Inc. (NYSE:TISI), Quanex Building Products Corporation (NYSE:NX), and 111, Inc. (NASDAQ:YI). This group of stocks' market values match ATEN's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AVRO,4,66404,-2 TISI,14,94607,2 NX,16,44813,0 YI,3,13149,0 Average,9.25,54743,0 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 9.25 hedge funds with bullish positions and the average amount invested in these stocks was $55 million. That figure was $95 million in ATEN's case. Quanex Building Products Corporation (NYSE:NX) is the most popular stock in this table. On the other hand 111, Inc. (NASDAQ:YI) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks A10 Networks Inc (NYSE:ATEN) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately ATEN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on ATEN were disappointed as the stock returned -7.5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published at Insider Monkey.