Published on 7 Feb 2022 on Insider Monkey via Yahoo Finance

Did The Smart Money Get Equinix Inc (EQIX) Right?

How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Equinix Inc (NASDAQ:EQIX) and determine whether hedge funds had an edge regarding this stock.

Equinix Inc (NASDAQ:EQIX) investors should be aware of a decrease in hedge fund sentiment in recent months. Equinix Inc (NASDAQ:EQIX) was in 31 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 55. Our calculations also showed that EQIX isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let's review the new hedge fund action encompassing Equinix Inc (NASDAQ:EQIX).