Facebook's Hedge Fund Problem
Updated from 1:24 p.m ET with Zynga CEO departure and closing Facebook share price .
NEW YORK ( TheStreet) -- Facebook
For the ordinary investor, or even a burned buyer of Facebook's IPO, the seeming lack of interest by big money investors is troubling. Buying among hedge funds in upcoming quarterly Securities and Exchange Commission filings or in large individual holdings, however, could be a sign Wall Street's most influential investors finally see value in the billion-member social network's shares.
Unlike competitors in Silicon Valley who've suffered falling share prices, Facebook has almost no vocal Wall Street investors supporting the company's current stock valuation. Currently, Facebook remains relatively un-owned by the hedge fund community, even as the technology and internet sectors become a favorite of hedge fund activists and value investors.
Meanwhile, as venture capital backers and the company's employees exit Facebook shares through lockup expirations, there is little indication Wall Street mega-funds will emerge as a buyer. In contrast, AIG
In recent years, turnarounds at Yahoo!
Third Point was the key Yahoo! investor in pressing for CEO Marissa Mayer's hiring and the company's recent acquisition of Tumblr, both of which have been received well by markets. Icahn, meanwhile, has cast crucial support of Netflix as the streaming movie service diversifies its content offerings and grows subscribers.
Loeb recently cast his money on the deconsolidation and financial recovery of Japanese electronics giant Sony
Loeb and Icahn's work in the tech sector is matched across the hedge fund industry.
David Einhorn of Greenlight Capital Management recently succeeded in spurring Apple
As investors await a clear bottoming in Apple shares, Jeffrey Gundlach of Doubline Capital has become a buyer of Apple's shares at about $425 apiece, TheStreet first reported .
Some struggling recently IPO'ed internet and tech players have seen their shares surge in 2013 as hedge funds finally enter stocks at low prices.
Tiger Global Management, for instance, is benefiting from a more than doubling in Groupon