Communication equipment companies make the products needed to connect in the modern world – be it products they sell directly to consumers or components that other companies use to make their communication equipment. The industry is driven by innovation and trends. As a result, do-it-yourself investors typically end up clutching at straws trying to figure out where to place their money in this industry.
Hedge fund managers, on the other hand, have the advantage – most notably, they have teams of analysts looking at the market, its regulation, trends and innovation that do-it-yourself investors just don’t have. That combined with the fact that they report their portfolios every quarter makes them perfect models for do-it-yourself investor inspiration.
Here is a list of communication equipment companies hedge funds love:
QUALCOMM, Inc. (QCOM): Of the 300+ hedge funds we track, 66 were invested in QCOM at the end of the third quarter, compared to 64 at the end of the second quarter. Total hedge fund investment in the company slipped from $4.29 billion at the end of June to $3.89 billion at the end of September. At the end of the third quarter, Stephen Mandel’s Lone Pine Capital had $351.23 million invested in the company after increasing its stake by +17%. Lee Ainslie’s Maverick Capital was close behind. It had $327.63 million invested in QCOM at the end of the third quarter.
Research in Motion, Ltd. (RIMM): There were 27 hedge funds invested in RIMM at the end of the third quarter, down from 29 at the end of the second quarter. Total hedge fund investment in the company also fell, moving from $913.71 million at the end of June to $769.82 million at the end of September. Prem Watsa’s Fairfax Financial Holdings had $239.86 million in RIMM at the end of the third quarter after increasing its stake by a whopping +41%.
Motorola Solutions, Inc. (MSI): Hedge fund investment in MSI declined only marginally in the third quarter, going from $3.58 billion across 25 funds at the end of June to $3.44 billion across 24 funds at the end of September. Carl Icahn’s Icahn Capital had over $1.6 billion invested in MSI at the end of the third quarter, while Jeffrey Ubben’s Valueact Capital had a position worth just under $1.01 billion in the company. George Soros’ Soros Fund Management is also a fan.
Harris Corp. (HRS): There were 24 hedge funds invested in HRS at the end of the third quarter, down from 26 at the end of the second quarter. Total hedge fund investment in the company went down to $134.99 million at the end of September from $162.14 million at the end of June. HRS is a favorite pick for GMT Capital, Boaz Weinstein’s Saba Capital and D.E. Shaw’s D E Shaw.
JDS Uniphase Corporation (JDSU): The number of hedge funds invested in JDSU increased from 16 at the end of the second quarter to 19 at the end of the third quarter. However, the total amount hedge funds invested in the company went in a completely different direction, falling to $142.49 million at the end of September from $266.24 million at the end of June. Fans of JDSU include Glenn Russell Dubin’s Highbridge Capital Management, Ken Fisher’s Fisher Asset Management and Steve Cohen’s SAC Capital Advisors.
Acme Packet, Inc. (APKT): Hedge fund investment in APKT went from $277.15 million spread across 22 funds at the end of the second quarter to $197.72 million across 17 funds at the end of the third quarter. In the third quarter, John Murphy’s Alydar Capital, Donald Chiboucis’ Columbus Circle Investors and Steve Cohen’s SAC Capital Advisors each increased their positions in APKT significantly.
Nokia Corp. (NOK): Hedge fund investment in NOK grew from $32.36 million across 10 funds at the end of the second quarter to $59.13 million over 16 funds at the end of the third quarter. Philippe Laffont’s Coatue Management had $25.62 million in NOK after increasing its position in the company by +332% in the third quarter. Rob Citrone’s Discovery Capital Management and Ken Griffin’s Citadel Investment Group are also fans of NOK.