Micron Technology, Inc. (NASDAQ:MU) has experienced a decrease in support from the world’s most elite money managers of late. The good news is that ultra conservative hedge fund manager Seth Klarman still loves the stock. David Einhorn, Philippe Laffont, and John Thaler are among other technology hedge funds that are bullish about the stock. Should you really care about what hedge funds are doing?
To most market participants, hedge funds are perceived as underperforming, outdated financial vehicles of yesteryear. While there are greater than 8000 funds with their doors open at the moment, Experts at Insider Monkey, a website specializing in hedge funds, hone in on the aristocrats of this club, approximately 700 funds. Most estimates calculate that this group of people control the lion’s share of the smart money’s total capital, and by tailing their first-class equity investments, Insider Monkey has brought to light various investment strategies that have historically defeated Mr. Market. For instance, Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in their back tests.
With all of this in mind, we’re going to go over the new action surrounding Micron Technology, Inc. (NASDAQ:MU).
How have hedgies been trading Micron Technology, Inc. (NASDAQ:MU)?
Heading into Q4, a total of 109 of the hedge funds tracked by Insider Monkey were long in this stock, a change of -12% from the previous quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly.
Of the funds tracked by Insider Monkey, Seth Klarman’s Baupost Group had the biggest position in Micron Technology, Inc. (NASDAQ:MU), worth close to $1.77 billion, corresponding to 30.8% of its total 13F portfolio. Sitting at the No. 2 spot is Greenlight Capital, led by David Einhorn, holding a $1.0441 billion position; the fund has 15.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism encompass Andreas Halvorsen’s Viking Global, D. E. Shaw’s D E Shaw and Philippe Laffont’s Coatue Management.
Judging by the fact that Micron Technology, Inc. (NASDAQ:MU) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there were a few fund managers who were dropping their positions entirely last quarter. Interestingly, John Lykouretzos’s Hoplite Capital Management said goodbye to the biggest investment of the 700+ funds tracked by Insider Monkey, valued at close to $141 million in stock. First Eagle Investment Management also sold off its stock, about $108.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 15 funds last quarter.