As aggregate interest increased, specific money managers were breaking ground themselves. Two Sigma Advisors, managed by John Overdeck and David Siegel, created the largest position in Guidewire Software Inc (NYSE:GWRE). Two Sigma Advisors had $4.2 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $3.8 million investment in the stock during the quarter. The following funds were also among the new GWRE investors: George Hall’s Clinton Group, D E Shaw, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Guidewire Software Inc (NYSE:GWRE) but similarly valued. These stocks are Taubman Centers, Inc. (NYSE:TCO), Toll Brothers Inc (NYSE:TOL), Gentex Corporation (NASDAQ:GNTX), and IAC/InterActiveCorp (NASDAQ:IAC). This group of stocks’ market valuations match GWRE’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TCO | 19 | 436312 | 1 |
| TOL | 29 | 329585 | 1 |
| GNTX | 23 | 225660 | 3 |
| IAC | 31 | 1291066 | -4 |
As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $571 million. That figure was $119 million in GWRE’s case. IAC/InterActiveCorp (NASDAQ:IAC) is the most popular stock in this table. On the other hand Taubman Centers, Inc. (NYSE:TCO) is the least popular one with only 19 bullish hedge fund positions. Guidewire Software Inc (NYSE:GWRE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds really love. In this regard IAC might be a better candidate to consider a long position in.
Disclosure: None
