We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of Carbonite Inc (NASDAQ:CARB) based on that data.
Carbonite Inc (NASDAQ:CARB) has seen an increase in activity from the world’s largest hedge funds of late. CARB was in 19 hedge funds’ portfolios at the end of the third quarter of 2015. There were 18 hedge funds in our database with CARB holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Park Sterling Bank (NASDAQ:PSTB), Axcelis Technologies Inc (NASDAQ:ACLS), and Monarch Casino & Resort, Inc. (NASDAQ:MCRI) to gather more data points.
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In the 21st century investor’s toolkit there are tons of indicators shareholders have at their disposal to value stocks. Some of the best indicators are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the top money managers can outclass the broader indices by a solid amount (see the details here).
With all of this in mind, let’s go over the new action regarding Carbonite Inc (NASDAQ:CARB).
What have hedge funds been doing with Carbonite Inc (NASDAQ:CARB)?
At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the second quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Crosslink Capital, managed by Seymour Sy Kaufman and Michael Stark, holds the largest position in Carbonite Inc (NASDAQ:CARB). Crosslink Capital has a $23.2 million position in the stock, comprising 3.2% of its 13F portfolio. Sitting at the No. 2 spot is Brett Hendrickson of Nokomis Capital, with a $12.4 million position; 3.6% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism contain Jim Simons’ Renaissance Technologies, Peter S. Park’s Park West Asset Management and Brian C. Freckmann’s Lyon Street Capital.
Now, specific money managers have jumped into Carbonite Inc (NASDAQ:CARB) headfirst. SG Capital Management, managed by Ken Grossman and Glen Schneider, established the biggest position in Carbonite Inc (NASDAQ:CARB). SG Capital Management had $2.6 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.2 million investment in the stock during the quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Carbonite Inc (NASDAQ:CARB) but similarly valued. We will take a look at Park Sterling Bank (NASDAQ:PSTB), Axcelis Technologies Inc (NASDAQ:ACLS), Monarch Casino & Resort, Inc. (NASDAQ:MCRI), and Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD). All of these stocks’ market caps match CARB’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PSTB | 12 | 36595 | 4 |
| ACLS | 22 | 41854 | 3 |
| MCRI | 8 | 25456 | 0 |
| GLDD | 8 | 27783 | 2 |
As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $33 million. That figure was $84 million in CARB’s case. Axcelis Technologies Inc (NASDAQ:ACLS) is the most popular stock in this table. On the other hand Monarch Casino & Resort, Inc. (NASDAQ:MCRI) is the least popular one with only 8 bullish hedge fund positions. Carbonite Inc (NASDAQ:CARB) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ACLS might be a better candidate to consider a long position.
