Xilinx, Inc. (NASDAQ:XLNX) is showing itself to be an up-and-coming player in the semiconductor world, and it is fervently defending itself in courtrooms. (Nowadays, that seems to be the path to respectability – if your devices or services are being copied or resold in a nefarious way.) Xilinx, Inc. last week filed suit in a California court, charging its distributor, Flextronics of fraudulent activity revolving around selling defective Xilinx chips at a higher rate than market price and leaving Xilinx, Inc. holding the bag in meeting warranty standards on the chips. Xilinx, Inc. is going hard after Flextronics for what it claims are misrepresentations of devices and products and conducting business in the grey market, including buying products at a discount and re-selling them at a higher rate knowing there wre defects.
With that in mind, is Xilinx, Inc. (NASDAQ:XLNX) a good addition to your portfolio? XLNX has experienced an increase in support from the world’s most elite money managers in recent months.
What have hedge funds been doing with Xilinx, Inc. (NASDAQ:XLNX)?
In preparation for this quarter, 40 of the hedge funds tracked by Insider Monkey were bullish in this stock, a 74-percent increase from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes considerably.
Of the funds tracked by Insider Monkey, Alkeon Capital Management, managed by Panayotis Takis Sparaggis, holds the largest position in Xilinx, Inc. (NASDAQ:XLNX). Alkeon Capital Management has a $146.7-million position in the stock, comprising 2.9 percent of its 13F portfolio. On Alkeon Capital Management’s heels is Citadel Investment Group, led by Ken Griffin, holding a $108.2-million position; 0.2 percent of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions consist of Israel Englander’s Millennium Management, Jim Simons’ Renaissance Technologies and Dmitry Balyasny’s Balyasny Asset Management.
With a general bullishness amongst the heavyweights, key hedge funds have jumped into Xilinx, Inc. (NASDAQ:XLNX) headfirst. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the biggest position in Xilinx, Inc. (NASDAQ:XLNX). Balyasny Asset Management had $19.7 million invested in the company at the end of the quarter. Andrew Sandler’s Sandler Capital Management also initiated a $17.9 million position during the quarter. The following funds were also among the new XLNX investors: Joe DiMenna’s ZWEIG DIMENNA PARTNERS, Brian Ashford-Russell and Tim Woolley’s Polar Capital, and Scott Fine and Peter Richards’ Empire Capital Management.
How have insiders been trading Xilinx, Inc. (NASDAQ:XLNX)?
Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the latest six-month time period, Xilinx, Inc. (NASDAQ:XLNX) has seen zero unique insider purchases and 14 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Xilinx, Inc. (NASDAQ:XLNX). These stocks are IPG Photonics Corporation (NASDAQ:IPGP), Skyworks Solutions Inc (NASDAQ:SWKS), Broadcom Corporation (NASDAQ:BRCM), Marvell Technology Group Ltd. (NASDAQ:MRVL), and Analog Devices, Inc. (NASDAQ:ADI). All of these stocks are in the semiconductor – integrated circuits industry and their market caps are closest to XLNX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|IPG Photonics Corporation (NASDAQ:IPGP)||17||0||7|
|Skyworks Solutions Inc (NASDAQ:SWKS)||31||0||8|
|Broadcom Corporation (NASDAQ:BRCM)||53||0||11|
|Marvell Technology Group Ltd. (NASDAQ:MRVL)||40||0||1|
|Analog Devices, Inc. (NASDAQ:ADI)||32||0||10|
Thanks to the recent bull run of hedge fund interest, Xilinx, Inc. (NASDAQ:XLNX) has now become the No. 2 choice among hedge funds in this peer group, behind the 53 positions in Broadcom Corporation (NASDAQ:BRCM). However, Xilinx, Inc. is the leader of the group in terms of insider interest with its 14 transactions in the last six months.